Transport Dept welcomes SCA ruling dismissing RAF bid to dictate how its books are audited

JOHANNESBURG - The Department of Transport has welcomed a Supreme Court of Appeal (SCA) ruling dismissing the Road Accident Fund (RAF)’s bid to dictate how its books are audited.

The RAF wanted to use an international accounting standard, but the auditor-general has stood firm on using South Africa’s Generally Recognised Accounting Practice (GRAP).

The dispute has dragged on for years, with the fund receiving consistently poor audit outcomes.

Through a statement, the Transport Department said that valuable time and public money had been wasted and that the matter should never have been taken to court.

It said the RAF board had ignored repeated advice from government and must now accept the ruling and comply.

It added that the fund must work in line with the Accounting Standards Board.

The department further urged the RAF to focus on fixing its financial management, rather than fighting the system.