RAF ‘deliberately withholding' information from Scopa
The SIU tells us that one law firm has received an incredibly disproportionate portion of the work allocated by the RAF – Scopa chair.
What is the RAF hiding, and why does its R1.2m-a-year chair not think it 'important enough' to make sure Scopa is given the information it asked for? Picture: Moneyweb
The Road Accident Fund (RAF) has been accused of deliberately withholding information from Parliament's Standing Committee on Public Accounts (Scopa) about the top 10 law firms to receive briefs and payments from the fund.
Scopa chair Songeza Zibi said on Wednesday he has asked for this information twice, the first time on 6 November 2024. He now believes 'this information is being deliberately withheld from the committee for improper reasons'.
'In the intervening period, the SIU [Special Investigating Unit] came to brief the committee and one of the things that they told us is that one of the law firms has received an incredibly disproportionate portion of the work allocated by the RAF.
'We do not know who that law firm is but you can see why that information is pertinent.'
He said he cannot understand 'why it is easy to provide the plaintiff information but it seems impossible to provide the corporate legal services information' when the committee has asked for it in writing and in the sitting.
Zibi said one of the things he is concerned about is that there are names of law firms that appear on both the lists.
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What does the RAF chair say?
RAF chair Lorraine Francois apologised for the information not being provided and assured the committee it will be provided.
Zibi said his difficulty is that Francois was in the meeting and knew Scopa asked for this information, which has not been provided.
Zibi said it would not be unfair to hold Francois responsible for the failure to provide this information because the board is the accounting authority.
Francois said the RAF board secretary takes note of Scopa's requirements but they always assume that it is the responsibility of the RAF CEO and executive to put this information together.
Controversial RAF CEO Collins Letsoalo was placed on special leave with full pay and benefits by the board on Tuesday as a precautionary measure, but it was stated that this did not constitute disciplinary action.
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Francois said most of the time, the information requested gets submitted directly to Scopa.
'We are a non-executive board so we don't review everything that comes here directly.
'That is the responsibility of the executive. Now I take full accountability and will ensure this happens. But to respect the request of this committee, I will now get to that level to make sure we will provide this information,' she said.
Scopa member Mark Burke of the DA took issue with her answer and asked her what her annual compensation is. Francois said it is about R1.2 million.
'You get paid R1.2 million, which is the equivalent of a parliamentary salary and in your mind it's too operational for you to respond to the [request] for information,' said Burke.
'That [it] is beyond the scope of your work. Does that seem reasonable to you?'
Zibi said he would answer this question.
'You [Francois] didn't think it was important enough because I have raised it twice and you simply didn't bother to check.
'We are not asking you to be operational. I am asking you to ensure that the needs of the committee are met by way of information,' he said.
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'Terminate the board immediately'
Scopa member Alan Beesley of ActionSA followed up by stating that he found Francois's response dumbfounding.
'I saw the list that [Zibi] asked for. It's not an extensive list,' said Beesley.
He requested that Deputy Minister of Transport Mkhuleko Hlengwa write letters of termination immediately to the RAF board because it is acting with immunity at the moment and treating parliament with disrespect, which is totally unacceptable.
Acting RAF CEO Phathutshedzo Lukhwareni said a panel of 43 law firms was appointed by the RAF in December 2023, but only 19 were briefed and paid during the 2023 and 2024 financial years 'at the time of preparing the report'.
Lukhwareni said a total R6 million was paid to these law firms in 2023, and around R104 million in 2024.
He said it is a panel (of law firms) and obviously the selection takes place depending on the complexity of the matter.
ALSO READ: RAF at risk of imploding
No state security clearance
Scopa was also told that not a single member of the RAF's board or senior executive has a security clearance from the State Security Agency (SSA).
Lukhwareni said all the forms have been submitted to the SSA for the vetting process and interviews have been held with some of the executives but 'from here on it's beyond our control from a RAF perspective and SSA is responsible'.
Zibi said something does not match because on 16 October 2024 he had an exchange with Francois about the vetting of officials and one official, Letsoalo, was said to be vetted.
Zibi pointed out that Letsoalo said in March 2025 that he had been vetted – and the difference between what he said then and the state of affairs now 'means for the second time he lied to the committee'.
'I asked him about the treasurer at the RAF and he [also] lied about that.'
Scopa member Patrick Atkinson of the DA said Letsoalo – who was initially acting CEO of the RAF and has now been CEO for five years – has been without a security clearance for seven years.
Atkinson said the problem with that is that (without clearance) Letsoalo has not been legally appointed to that position and the question then is how would he have the authority to take the legal action he has against the Auditor-General (AG).
ALSO READ: Expert accuses RAF of misrepresenting itself and its purpose
The RAF unsuccessfully applied to review and set aside the AG's disclaimer of the fund's 2020/2021 annual financial results and to declare the disclaimer invalid and unlawful.
The AG issued the disclaimer because the RAF used an accounting standard it was not permitted to use.
'I understand the court might give him six months to get his security clearance but not seven years,' Atkinson said.
'If he has been operating for seven years without a security clearance, it raises a massive legal issue about a whole variety [of issues] about the accounting principles, not paying out medical aids and foreigners and a whole variety of board minutes which are illegal.'
Zibi said he would have to take legal advice on that and would not hold the Department of Transport or RAF responsible for the tardiness of the SSA.
He said Scopa will take that up with the responsible minister, but the committee needs to work out if Scopa was misled when the CEO told the committee that he had been vetted.
This article was republished from Moneyweb. Read the original here.
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