The RAF board suspended its acting CEO, CFO and two others to ensure an independent investigation into governance failures.
The Road Accident Fund’s (RAF) board has placed four senior executives of the fund on suspension.
The decision comes as the Standing Committee on Public Accounts (Scopa) investigates the RAF’s financial management and related affairs. The enquiry has been ongoing for several weeks.
Four top RAF executives suspended
In a statement on Friday, the board confirmed several senior executives are on precautionary suspension with immediate effect. Those suspended include the acting CEO, CFO, chief governance officer, and head of the CEO’s office.
“The decision was taken to allow for an independent and unhindered investigation into certain administrative and governance matters within the organisation,” the board said.
The RAF board said it suspended the officials to protect the integrity of the investigation. It added that the suspensions do not imply guilt or misconduct.
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The board said the suspensions show its commitment to acting in the best interests of the RAF. It aims to safeguard public trust and uphold ethical standards in managing public funds.
This week, during the Scopa enquiry, a former executive exposed systemic corruption and fraudulent claims. He also revealed financial mismanagement, including R1.2 billion in duplicate payments and payments to deceased claimants.
Sefotle Modiba, RAF’s former acting chief investment officer, described the entity as chaotic and corrupt. His explosive affidavit to parliament painted a picture of dysfunction and incompetence.
‘Chaotic and corrupt’ – former RAF executive
He testified that the RAF was “days away from financial collapse” when he joined the entity in May 2020.
The board said it implemented interim arrangements to keep RAF operations running during the suspensions. These measures aim to ensure the fund continues to fulfil its mandate to serve South Africans.
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“The RAF remains committed to sound corporate governance, accountability and the highest ethical standards in all its operations,” the board said.
As the investigation continues, the RAF said it will not provide further comment at this stage. The board will share updates as appropriate and in line with due process.
Meanwhile, after parliament exposed the RAF’s problems, a body defending road accident victims called for ministerial action.
‘Warning has been vindicated’ – road accidents body
Protection of Road Accident Victims (APRAV) deputy chair Ngoako Mohlaloga said the group has fought dysfunction at the RAF for over a decade.
“APRAV repeatedly warned that unlawful practices and ministerial inaction would collapse the RAF and devastate the lives of victims. That warning has now been vindicated, and South Africa stands at a crossroads,” he said.
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Additional reporting by Ina Opperman and Sipho Mabena
