The Portfolio Committee on Transport’s Chairperson, Ms. Mina Lesoma, urged the Minister of Transport, Ms. Sindi Chikunga, to steer her staff away from engaging in unnecessary litigation. This plea was made during a briefing on the department’s annual performance plans and those of the Drivers Licence Card Account and the Road Accident Fund (RAF).
According to Parliament of South Africa, the RAF has been significantly investing its budget in litigation related to an accounting standards policy that was not sanctioned by the South Africa Bureau of Standards, the National Treasury, and the Auditor-General. After an initial court loss and a subsequent appeal, Ms. Lesoma criticized the RAF staff for engaging in litigation without personal financial implications. She suggested that the Minister should direct the department’s entities in such matters. The committee members also raised concerns about various issues within the department, including the controversial accounting policy, the taxi recapitalization program, the influence of a so-called “construction mafia” on road projects, the 30-day payment policy, and instability in leadership roles.
Minister Chikunga revealed that the dispute involving the RAF’s accounting policy is set for another court hearing in early 2024. She expressed disappointment that the entities failed to reach an out-of-court settlement, emphasizing the futility of the ongoing legal battle. On the matter of the “construction mafia,” Ms. Chikunga condemned such criminal behaviors, stating that they should not be negotiated with or paid.
Committee member Mr. Mosebenzi Zwane pressed for a resolution of the RAF issue within the current administrative term, emphasizing the need to cut down on legal expenses and calling for a progress report from the RAF.
Ms. Zanele Lorraine Francois, Chair of the RAF Board, informed the committee of their willingness to explore alternative resolutions with the Auditor-General but acknowledged the limitations in expediting the process due to the need for agreements from various parties.
RAF CEO Mr. Colins Letsoalo highlighted the inequities of the current RAF model, which he said disadvantages the poor. He stressed the need for a change in the system that currently favors the wealthy.
Finally, Ms. Lesoma requested a detailed plan on how the department intends to address the recommendations and interventions from the Standing Committee on Public Accounts.