Sunshine Hospital, a 200-bed facility forced to close due to financial constraints, is still owed more than R300m by the Road Accident Fund in unpaid invoices, the standing committee on public accounts (Scopa) heard on Tuesday.
The hospital, a private medical institution, began treating motor vehicle accident victims in 2003 at the RAF’s request, operating under section 17 of the Road Accident Fund Act.
The hospital closed permanently in May 2025, citing financial insolvency due to sustained nonpayment.
A formal co-operation agreement was signed in 2007, enabling consolidated billing for hospital and associated medical services.
The hospital’s boss, Kenneth Ford, told the Scopa hearing of the RAF’s failure to honour more than R300m in adjudicated claims — despite multiple court orders, constituting a breach of its constitutional obligations and undermining public finance accountability.
Ford’s testimony formed part of Scopa’s oversight inquiry into the RAF, initiated in response to mounting allegations of financial impropriety, maladministration and systemic noncompliance with legal obligations.
The committee’s investigation aims to determine whether the RAF’s conduct has caused fruitless and wasteful expenditure and compromised access to healthcare for road accident victims.
Ford’s affidavit, supported by court records and internal RAF documentation, was one of several submissions under review as the parliamentary committee prepared its interim findings.
Ford’s affidavit detailed a 20-year relationship with the fund that was fraught with erratic payments, litigation and what he described as “total disregard for the rule of law”.
He said all the hospitals’ claims were submitted using the prescribed RAF 2 form and that his hospital’s tariffs remained below the RAF’s own published rates.
The RAF unilaterally terminated the agreement in July 2018 but continued to operate under its terms until March 2020, when it imposed a moratorium on payments.
Ford stated that the moratorium was based on an internal investigation, the findings of which — dated September 13 2021 — confirmed that services were rendered, no double billing occurred, and no collusion was found. Despite this, the moratorium remained in place.
By September 29, Sunshine Hospital had issued 6,285 summonses against the RAF and obtained 647 judgments totalling R180.4m. Legal costs and interest arising from delayed payments were estimated at R23.8m.
A court order granted on December 15 2020 required the RAF to pay monthly instalments of R36.9m, but the payments ceased in May 2022. This prompted further litigation, and a second judgment for R301.7m was made.
The RAF’s appeals to the Supreme Court of Appeal and Constitutional Court were dismissed with costs.
Following the final dismissal in March 2023, the RAF resumed payments, including an initial R90m instalment and subsequent monthly payments of R45.6m.
But Ford said these payments addressed only historical invoices. By then, an additional R150m had accrued and was uploaded to the RAF’s “requested (but) not yet paid” list, the value of which the fund allegedly refused to disclose.
A matter concerning the list is scheduled before the Supreme Court of Appeal on November 12.
Ford also addressed statements made by RAF spokesperson McIntosh Polela in March 2024, alleging corruption and overservicing.
The high court granted an interdict against the RAF and Polela, finding no evidence to substantiate the claims.
Ford submitted that the RAF’s conduct contravenes sections 1 and 165 of the constitution, which require respect for the rule of law and enforcement of judicial decisions. He called on Scopa to intervene, stating that “the RAF cannot be allowed to thwart the justice system”.
