The Portfolio Committee on Transport has questioned the timing of the precautionary suspensions of four senior executives at the Road Accident Fund (RAF), just as the Fund’s new board was set to appear before Parliament.
Transport Minister Barbara Creecy dissolved the previous RAF board in July, citing ongoing governance and operational failures that had “significantly undermined” the Fund’s ability to meet its mandate. A new interim board was appointed in August, set to serve for six months or until a permanent board is installed.
On 7 November, the interim board announced that four senior executives – including acting CEO Phathutshedzo Lukhwareni, chief financial officer Bernice Potgieter, and chief governance officer Mampe Kumalo – had been placed on precautionary suspension. The head of the CEO’s office was also suspended, although his or her name has not been confirmed publicly.
The board said the move was necessary “to allow for an independent and unhindered investigation into certain administrative and governance matters within the organisation”.
It emphasised that the suspensions “do not in any way constitute a finding of wrongdoing against the affected officials” and were intended “to ensure the integrity and transparency of the investigative process”.
The board added that the decision was taken in the best interests of the organisation, to protect public trust and uphold ethical standards in managing public funds.
However, portfolio committee chairperson Donald Selamolela questioned the timing of the suspensions, which came just before the board and the Auditor-General of South Africa (AGSA) were due to present the RAF’s annual audit report on 11 November.
“These are executives who work side by side with the accounting authority… Now it is important for them to be here. Was it necessary for them to be suspended just a day before appearance? What was the emergency, or we still could have had them come here to account for this 2024/25 financial year that they have presided over,” Selamolela said.
He expressed concern that the interim board has already suspended the entire RAF management structure.
“What makes the suspensions laughable is the fact that the interim board was unable to logically explain their decisions. This, even though the board is adamant that the decision was approved and concurred to by the ministry,” he said.
Selamolela warned that the board must avoid becoming a source of instability at the RAF and confirmed that Parliament will continue to scrutinise its decisions.
“We will have to invite this board to come and deal with the outstanding matters related to the annual report and audit before Parliament rises.”
The committee will also review the record of decision-making around the appointment of Victor Songelwa as interim CEO.
Board defends the executive suspensions
Kenneth Brown, interim chairperson of the RAF board, defended the suspensions, telling the portfolio committee that the decision was based on serious governance concerns and a history of misleading information.
Brown said the board, which started work on 8 August, inherited an annual report process complicated by delays from the Auditor-General, linked to issues around supply chain management and accounting standards.
“We met with the Auditor-General. We started to discuss what the issues are and agreed on a way forward so that we could finalise the annual financial statements,” he said.
He noted that attempts to obtain clear guidance from executives were often frustrated.
“The CFO could not give us a cogent answer on how to respond on those particular matters,” he said, describing repeated inconsistencies, including a recent presentation to the Standing Committee on Public Accounts (SCOPA) that ignored prior discussions on disputed accounting standards and a withdrawal by National Treasury from a crucial resolution meeting.
SCOPA is investigating the RAF’s governance, financial management, and litigation handling, amid missed court appearances, default judgments, and rising liabilities.
Brown also detailed examples of misrepresentation from the start. He alleged that the day after the board’s first meeting on 13 August, where they were introduced to the executives, Brown received an affidavit to sign on behalf of the board that contained “egregious” misrepresentations, including a claim that the board had agreed to extend a 180-day moratorium – a decision that, he insisted, had not been discussed.
“They expect us as a board to lie to the South African courts,” he said.
A hasty follow-up meeting was convened to correct the record.
The board also uncovered supply chain management irregularities and scrutinised the work of the Special Investigating Unit (SIU) and the Auditor-General. By 19 September, it had resolved that disciplinary action was warranted against the executives, following legal advice that they “have got a case to answer”.
Brown emphasised that the suspensions were not taken lightly.
“It is not as if, last week, we just took a decision that we’re going to do it… The executives… have got serious allegations and matters to answer for,” he said.
He added that the timing of the suspension was aligned with the board’s fiduciary duties, Public Finance Management Act obligations, and Auditor-General instructions that consequence management must occur.
He also outlined the board’s risk management planning. On 31 October, the board reviewed a risk mitigation strategy to manage potential consequences of the suspensions, taking into account Parliament’s scrutiny.
“It was based on that process that that decision was taken,” Brown said.
RAF reforms and backlog clearance plans
Deputy Minister of Transport Mkhuleko Hlengwa provided an update on progress at the RAF, highlighting steps to address long-standing governance, operational, and financial challenges.
Hlengwa said the process of appointing a new substantive board was under way, and the Road Accident Benefits Scheme Bill was being finalised for submission to Cabinet.
The Bill, he explained, “seeks to address quite a number of issues that honourable members have actually raised in the comments and questions that they have dealt with this morning”, including payments to illegal foreign nationals.
“It remains my view that we should not be paying illegal foreign nationals. We are, however, handicapped by a court judgment in that regard,” he added.
The deputy minister emphasised the Fund’s focus on long-term financial sustainability, including the introduction of defined benefits, a no-fault scheme, and annuity-based payments. He also highlighted the urgent need to clear the RAF’s backlog of claims.
“Just last week, Friday… we will go out to communities, particularly far-flung areas which are unable to access the Road Accident Fund… claimants who have got outstanding matters had been contacted, and we all converged in one area, and we were dealing with claims,” Hlengwa said. Some claims were as old as eight years, and the board has set a target of paying out more than R4 billion per month over eight months to reduce the backlog.
Hlengwa called for a “people-centred, agile, responsive RAF” and raised concerns over the use of an inappropriate accounting standard that has plagued the fund for years.
He described the previous change as “reckless and irresponsible” and said the board is exploring responsible ways to withdraw from ongoing Constitutional Court action while complying with recognised accounting standards.
The deputy minister also confirmed that work was under way to fill key vacancies, including the CEO position, with shortlisting and interviews in progress.
Former RAF CEO Collins Letsoalo was placed on special leave on 27 May this year, which was converted into a formal suspension on 3 June after the board accused him of insubordination for failing to appear before SCOPA.
Letsoalo’s five-year contract, which began on 6 August 2020, expired on 6 August 2025, and the Minister of Transport confirmed he was no longer employed by the RAF.
The committee accepted the RAF annual report and said it will now be subjected to normal parliamentary processes building to the budget adjustment process.
