A draft report from the Scopa inquiry into the Road Accident Fund has made findings on governance failures during the tenure of former CEO Collins Letsoalo.
A total of 188 employees suspended in a period of just five years, specialists ‘parachuted’ into top positions and a CEO who was carrying out the functions of the chief claims officer are among the findings contained in a draft report by Parliament’s Standing Committee on Public Accounts (Scopa) on the Road Accident Fund (RAF).
Scopa's months-long inquiry delved into the RAF's governance, financial management and administration.
Chief among the findings is that an organisational structure review conducted at the RAF in 2021, following the arrival of the now former CEO Collins Letsoalo, left several critical senior positions vacant for prolonged periods; some of which were then occupied by specialists recruited into his office.
These specialists were involved in major policy decisions at the RAF, including an accounting policy change that resulted in the significant understatement of the Claims Liability by more than R300 billion.
