Delayed RAF Audit and Annual Report: 2023 Update

In 2023, the Road Accident Fund (RAF) is still functioning and processing claims. However, 2022 was a year of unprecedented dysfunction.

A series of South African court rulings, including a 2023 ruling against the RAF’s CEO and board, may now be forcing the situation to a head. We hope this will trigger positive change.

Unsatisfactory audit findings against the RAF

In recent years, audit findings against the RAF have been alarming. The RAF has achieved only one clean audit in the past five years.

Since 2018-19’s unqualified audit, and with the exception of the following financial year, outcomes have become progressively unacceptable.

Of particular significance is the “disclaimer” opinion and audit report issued by the Auditor-General (AG) in 2020-21. It is considered one of the worst possible outcomes, as it implies the RAF failed to provide the required financials on which to base an audit.

More specifically, the AG, Tsakani Maluleke, noted she was unable to procure audit evidence for claims liabilities and claims expenditures totalling R27.8 million and R37.1 billion respectively, as disclosed on the financial statements.

Delays due to litigation

Following an urgent application to the High Court, in which the RAF unsuccessfully attempted to block the publication of the audit report, it has since taken the report on judicial review.

The fact that the dispute is still before the courts has resulted in delays in the tabling of the report before Parliament by the Minister of Transport.

In a letter to the Speaker, the Minister stated the outcome of the judicial review may affect the “content and conclusions” of the report.

Hence, the Minister is “unable to table the annual report, annual financial statements and the audit report of the Road Accident Fund at this stage”.

Failure to publish a 2021 RAF annual report

Despite assurances by the Deputy Minister of Transport that the 2021 annual report would be submitted to Parliament by the end of April 2023, it is still outstanding.

On a more positive note, there is still time for the publication of the 2022 report. That is notwithstanding the fact the AG could not finalise the audit.

What now for RAF claims in 2023?

The RAF has faced administrative and financial difficulties for years. As a result, claims typically take years to be resolved.

That said, claiming against the RAF remains the only legal recourse for road accident victims seeking compensation.

In South Africa, victims who have sustained injuries in road accidents are unable to sue those responsible directly.

The best course of action is to seek legal representation from a knowledgeable personal injury attorney – someone who is familiar with the RAF claims process and who knows how to secure fair compensation for clients.