The standing committee on public accounts (Scopa) heard evidence on Thursday that the integrated claims management system of the Road Accident Fund (RAF) remains incomplete, its accounting policy change contested, and its financial governance under scrutiny.
Witnesses, including PwC partners, current and former RAF finance executives, and acting CIO Sefotle Modiba, were called to account for delays, cost escalations and disputed accounting treatments.
PwC partners Hannelie Gilmour and Thaaniya Isaacs said their mandate was limited to configuring Guidewire, Updraft and the intelligent digital platform, training RAF staff and providing level‑3 technical support.
They alleged PwC “did not advise on any operational or transitional stop‑gap measures” and had no role in the accounting policy change.
The first release of the claims management system went live in September 2024 in Gauteng and March 2025 in coastal regions, but enhancements in the second release remained in progress, with the third iteration under way and the fourth paused after changes in RAF project sponsorship.
Former acting CFO Boitumelo Mabusela testified that she authored the accounting policy shift to International Public Sector Accounting Standards (Ipsas 42), with technical input from RAF’s financial reporting director and consultations with the Accounting Standards Board (ASB).
She told MPs the change was intended to reflect RAF’s character as a social benefit scheme rather than an insurer, thereby reducing reported liabilities.
“It was my understanding that the ASB supported the change in accounting policy,” she said, adding that PwC was engaged only to verify figures through computer‑assisted audit techniques.
She conceded that the RAF did not seek legal advice before adopting the new system and opposed litigation against the auditor‑general, which RAF pursued and lost, incurring R10m in legal costs.
The committee also heard that the RAF’s liabilities remain substantial, with more than 101,000 claims processed through the system by October, of which 54,719 were compliant and 47,163 noncompliant.
Payment integration with SAP was only flagged as problematic in July, leaving R30m in claims awaiting approval. Witnesses acknowledged that legacy systems remain in use, creating dual regimes and complicating oversight.
Members pressed RAF officials on expenditure unrelated to claims processing, including nearly R4m spent on a staff awards function earlier this year. Invoices showed R1.1m on venue hire, R222,000 for a performance by Mi Casa, and R40,000 on “executive drinks”. MPs questioned the prudence of such spending given the RAF’s accumulated deficit of R27bn and liabilities projected to reach R423bn by 2027.
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