Accident Fund matter

22 April 2024

The Standing Committee on Public Accounts (SCOPA) welcomes the Gauteng Division of the High Court in Pretoria’s judgement dismissing, with costs, Part B of the Road Accident Fund’s (RAF) case against the Auditor-General of South Africa (AGSA). The RAF was challenging the factual and legal findings of the disclaimed audit opinion it received for the 2020/21 financial year.

On 20 December 2021, the AGSA issued a disclaimer audit opinion on the RAF’s annual financial statements for the 2020/21 financial year. The audit opinion was based on the changed accounting treatment of claims liability, which deviates significantly from the standards prescribed by the Accounting Standards Board. In Part A of the litigation, the RAF attempted, through an interdict, to prevent the AGSA from publishing the disclaimer. The court dismissed the interdict with costs in September 2022.  

SCOPA has on several occasions warned the Board of the RAF and the Department of Transport to comply with the AGSA and not take this matter to court. The RAF’s insistence on pursuing litigation in this matter despite being warned against this decision has unnecessarily cost the state a lot of money in legal fees. SCOPA reiterates its position that all the Board members and the Chief Executive Officer of the RAF should be held personally liable for the legal costs of this case.   

Issued by Faith Ndenze, Media Officer, Parliamentary Communication Services, 22 April 2024