ActionSA MP Alan Beesley has characterised the crisis at the Road Accident Fund (RAF) as a collapse of leadership and governance.
“Everything rises and falls on leadership,” Beesley said in an interview with Business Day, arguing that a weak board had been manipulated by a “sociopathic CEO” while successive ministers of transport had failed to intervene.
The standing committee on public accounts (Scopa) is holding an inquiry into the malaise at the fund.
Beesley did not want to pre‑empt the committee’s findings but indicated that it was considering recommendations that could include charges of dereliction of duty against the board, possible reckless trading and referrals to law enforcement agencies.
He added that former transport ministers should also be required to account for their inaction during the period in which the RAF received consecutive adverse audit opinions.
Beesley described the accounting practices used at the fund as “shocking” noting that the auditor‑general had issued disclaimed or adverse audit opinions for five consecutive years.
“It’s shocking that an entity the size of the RAF can have a disclaimed adverse opinion for five years and nobody raising red flags,” he said.
He argued that this amounted to a breakdown of internal controls and intentional concealment of the fund’s true financial position.
Beesley said accountability for such decisions had to be enforced, whether political, financial or criminal.
“If there has been corrupt activity by the CEO, by some of the board members, by some of the executives, the book needs to be thrown at them and they need to be criminally prosecuted,” he said.
Beesley was equally critical of the use of suspensions at the fund.
“Suspensions have been used as a tool of intimidation and damage control rather than genuine discipline,” he said, pointing to the cost of R48m for employees suspended on full pay for years and the recent suspension of four top executives, including the acting CEO and CFO.
He warned that the latest round of suspensions could be an attempt to shield executives from answering Scopa’s questions.
The consequences of mismanagement, he said, were stark.
“Sunshine Hospital was absolutely abysmal,” Beesley remarked, referring to the 200‑bed facility that closed in May after nonpayment of more than R300m owed by the RAF.
“Behind every accident, there’s an individual story. We talk about statistics, but you’re talking about somebody who has lost [his or her] legs. There are real stories of pain.”
He suggested remedies such as ring‑fenced payments, Treasury interventions or revised contracting arrangements to prevent further systemic harm.
Former CEO Collins Letsoalo, who has failed to appear before Scopa despite being subpoenaed, was singled out by Beesley as emblematic of the fund’s leadership crisis.
“He’s quite [inclined] to bully people, but when the roles are reversed, he goes running,” Beesley said.
He argued that parliament had to enforce its summons against Letsoalo and, if necessary, lay criminal charges.
“If criminals don’t get put in orange overalls, we’re wasting our time,” he added, expressing little confidence in the National Prosecuting Authority’s capacity to act.
Beesley said that parliament itself had failed the public by not acting earlier.
“The minute there was a disclaimed, adverse audit opinion, the flag should have been flying,” he said.
He said that the RAF was not salvageable in its current form.
“I think [the dysfunction is] just too deep,” he said.
Limiting payouts could be one interim measure, though he conceded this would be unfair to victims.
The long‑term significance of Scopa’s work, he argued, would depend on whether its findings lead to prosecutions, structural reform and restored public trust.
“We can’t allow people to get away with such large‑scale abuse,” Beesley said. “Without accountability, the RAF will remain a symbol of systemic failure in governance and financial oversight.”
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