Road Accident Fund accused of evading payments and attachments

The Road Accident Fund (RAF) has reportedly been leasing cars and office equipment worth millions of rand in an effort to avoid having its property attached for the non-payment of claims.

The fund has also opened new bank accounts and diverted funds into investment accounts to avoid direct payments to claimants who have obtained a writ of execution.

READ: Road Accident Fund officials accused of obstructing SIU investigations

These tactics were revealed by the Special Investigating Unit (SIU) at an inquiry of the Standing Committee on Public Accounts (SCOPA) on Friday, which is probing maladministration at the fund.

According to the RAF’s payment rules, a valid claim is supposed to be settled within 180 days. However, when the deadline is missed, lawyers often approach the courts to have the RAF bank account attached—frequently resulting in duplicate payments being made.

Principal Investigator Msubu Maseko said the SIU is investigating the dubious movement of funds into investment accounts in efforts to evade attachment.

"There are also other alternative bank accounts which have been referred for criminality," Maseko added.

The SIU said the RAF has also been leasing cars worth more than R5 million and equipment worth around R36 million to avoid the attachment of assets in lieu of outstanding payments.

The hearings will continue on Tuesday.