Minister of Transport Barbara Creecy has dissolved the board of directors of the Road Accident Fund RAF.
A statement issued by the department says this follows persistent governance and operational challenges at the RAF which has undermined its ability to execute on its legislated mandate.
The Minister cited protracted and costly litigation pursued by the RAF around the issue of accounting standards what it termed the reckless handling of the suspension of the CEO, Collins Letsoalo , which resulted in him legally challenging the same as well as the frequent case of default judgments made against the RAF, serving to raise its legal costs and undermining its financial sustainability, among other issues.
Creecy indicated that these factors had resulted in a loss of confidence in the Board.
Creecy says that the department has now approached National Treasury to appoint an interim functionary to act as the accounting authority at the RAF in the meantime, in line with the Public Finance Management Act.