Creecy dissolves RAF board
Minister of Transport Barbara Creecy has dissolved the board of the Road Accident Fund (RAF) after a litany of operational and governance failures at the entity, according to News24.
She has also asked the Special Investigating Unit (SIU) to request an expansion of the scope of its current investigation to cover the events of the last three months.
The RAF is insolvent, with liabilities exceeding its assets.
It also has chronic governance problems, which resulted in the suspension of its CEO, Collins Letsoalo, last month.
In addition to the SIU investigation, it faces a probe by Parliament’s Scopa.
Several whistle-blowers have also made disclosures about corruption at the fund.
Creecy said that among the reasons for the board’s dissolution was its ‘reckless’ handling of Letsoalo’s suspension, which has attracted a legal challenge and caused institutional uncertainty.
Other reasons included:
* The RAF’s protracted and costly litigation against the Auditor-General on the application of accounting standards.
* The occurrence of frequent default judgments against it.
* Deep divisions within the board, which reflect a lack of cohesion in critical decision-making processes.
*The board’s failure to fill at least two executive positions, critical to the mandate of the fund, namely the chief claims officer and head of legal.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
