In a candid briefing to Parliament’s Standing Committee on Public Accounts (SCOPA), the interim board of the Road Accident Fund (RAF) has unveiled a deeply troubled organization plagued by inefficiency, financial instability, and a pervasive “climate of fear” among staff.
Interim Board Chairperson Kenneth Brown did not hold back during Tuesday’s inquiry into maladministration at the fund, emphasising that the RAF’s outdated paper-based claims system is not only obsolete but particularly inhumane in handling death-related cases. With the board’s six-month tenure set to expire in just five days, Brown painted a grim picture of the challenges ahead.
“The magnitude of the work is massive. It’s a massive task, I will not lie. So, the task ahead is going to be tough,” Brown stated, underscoring the extensive reforms needed to salvage the entity.
Financially, the RAF teeters on the brink, according to Brown. The fund faced a staggering R20 billion in required payouts in December but had less than R5 billion in reserves. He pinpointed a recent court loss on the 180-day moratorium for settling claims as the tipping point that exacerbated the crisis.
Further revelations highlighted internal chaos: Approximately 300 employees who were unfairly suspended have returned without assigned roles, while the organization has brought in around 400 contract workers to fill gaps.
This testimony follows ongoing scrutiny of the RAF, including questions about decisions made by previous boards. As the interim team wraps up, the path to restoring functionality remains daunting.