The Road Accident Fund (RAF) has once again received an adverse audit opinion, mainly due to its continued use of an accounting standard that the Auditor General has ruled inconsistent with government financial regulations.
The fund reported a deficit of R2.3 billion for the financial year ending in March 2025, representing a 44 percent increase from the previous year. This means the RAF’s spending has continued to exceed the revenue it earns, despite being primarily funded through the fuel levy included in petrol prices.
Presenting the audit findings to Parliament’s transport portfolio committee on Tuesday, the Auditor General’s office raised concerns about the RAF’s solvency and its ability to settle outstanding claims. The report also revealed that unresolved issues relating to irregular expenditure from previous years have now accumulated to R459 million.
The audit further highlighted several challenges, including unfair procurement practices, prolonged claim settlements, and the use of unauthorised bank accounts, which resulted in financial losses amounting to R36.5 million.
According to audit manager Siphesihle Mlangeni, the RAF’s use of an unsuitable accounting standard that does not recognise unsettled claims affects the accuracy of its reported liabilities, currently estimated at almost R28 billion. The true liability may be significantly higher than what appears in the financial statements due to the use of IPSAS 42.
The Auditor General also noted the absence of proper systems to address duplicate, incorrect, and overpaid claims, which now total R6.4 million.
The findings raise renewed concern over the RAF’s financial management and its ongoing struggle to meet obligations to claimants while maintaining compliance with government accounting standards.
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