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SA civic group urges transport minister to probe alleged waste at road fund

Blade Nzimande

The South African National Civic Organisation has urged transport minister Blade Nzimande to investigate alleged waste at the Road Accident Fund (RAF) as reported by a Sunday newspaper.

The Sunday Times reported that the technically insolvent RAF had entered into a furnisher rental contract for 300 chairs at R500,000 a month after a bid was scuppered to push through an even more costly five-year, R60-million furniture rental contract with the same company in March.

Blade Nzimande

National Treasury must urgently review service level agreements and standardise contracts for public entities to ensure that they are compliant with government wide cost-cutting measures,” SANCO national spokesperson, Jabu Mahlangu.

He said good governance and prudent financial management must be entrenched across all public entities.

The clean-up to stop the rot must begin and no bail-outs extended to public entities which conduct their dealings as through extravagance and wasteful expenditure is their core-business,” said Mahlangu.

“Executives that are running down some of the entities must be held personally liable for financial losses and boards which fail to uphold zero-tolerance approach towards corruption dissolved

Source: eNCA