RAF aims to appeal High Court’s judgement on new accounting rules

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The Road Accident Fund (RAF) has failed to convince the High Court in Pretoria to review and set aside its 2020/21 disclaimer audit report released by the Auditor General (AG).

In 2021, the RAF approached the courts to challenge the audit opinion given by the Auditor-General.

At the centre of the dispute was the decision by the RAF to adopt the new accounting rules which the AG did not recognise.

The new rules also improved the RAF financials.

The court dismissed the RAF application, saying that the new accounting standard used by the fund has not been adopted in the country.

The court says it was within the AG’s powers to make an audit finding.

In a statement, the RAF says it has noted the ruling with concern and disappointment.

It says its concerns stem from the fact that it is a social benefit fund and not an insurance.

The fund says it’s consulting with its lawyer with the aim to appeal the decision.

VIDEO | Chartered accountant and political commentator, Khaya Sithole, analyses the High Court’s RAF ruling as it was handed down in 2021