
SCOPA blames RAF’s litigation failures for billions in legal costs
The committee says delays in investigating and settling claims, combined with a chaotic approach to litigation, have driven much of the Fund’s escalating legal bill.

The committee says delays in investigating and settling claims, combined with a chaotic approach to litigation, have driven much of the Fund’s escalating legal bill.

An arrangement intended to cost R10m for 10 months ran for years, absorbed R26.6m in seven months, and included claims work outside its scope.

SCOPA says linking attorneys’ success fees to claim values may create incentives to inflate claims, while billions in legal costs flow through a small group of firms.

SCOPA’s draft report suggests the deeper the committee dug into the RAF, the more governance failures it uncovered.

The release of R7.1 billion buys time, but December’s equitable share assessment will determine whether non-compliant municipalities face another funding freeze.

Years of payment delays, missing invoices, and weak administration left medical experts unpaid, before the Fund sought to invoke prescription against some claims.

SCOPA votes to proceed with a criminal charge against former RAF CEO Collins Letsoalo, despite uncertainty over whether the summons he ignored was served correctly.

The government says work on reviving the RABS Bill is nearing completion, even as critics warn the reforms could worsen the RAF’s financial crisis.

A Court-ordered reset of the RAF claims process may force recognition of previously excluded liabilities, with potentially severe consequences for the Fund and the fiscus.

Investigations across four provinces reveal recurring irregularities, with recovery and prosecution still lagging far behind the findings.

SCOPA says the RAF 1 form may have kept claims out of the system, leaving the Fund exposed to a wave of unrecognised liabilities if it is set aside.

The final document is expected to reach the National Assembly in the next parliamentary term.

The committee’s final report is expected to examine the legal consequences of former chief executive Collins Letsoalo’s refusal to appear before Parliament.

Unless the Road Accident Benefit Scheme Bill is retrospective, it may fail to ease the Fund’s financial burden for more than a decade, warn MPs.

The Road Accident Fund has withdrawn its challenge to the Auditor-General and accepted adverse findings.

Severe understaffing in the Fund’s legal unit compounded years of governance failures and drove a surge in default judgments and rising claim costs.

Parliament’s announcement that SCOPA will seek the Speaker’s approval to lay criminal charges against former Collins Letsoalo leaves South Africans waiting to see what will happen next.