Rand Mutual Assurance tender concerns: Public Interest SA seeks intervention

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Opens in new windowOpens in new windowEnter fullscreen mode displaying this image.ExpandPublic Interest SA has asked the Prudential Authority and Compensation Commissioner to intervene at Rand Mutual Assurance over alleged governance failures. Picture: Business Day Story audio is generated using AI

Public Interest SA has lodged a public interest complaint with the Prudential Authority and the Compensation Commissioner, calling for intervention at Rand Mutual Assurance (RMA).

This is after serious allegations of conflicts of interest, procurement irregularities and governance failures involving the institution’s leadership.

The complaint follows findings contained in an ENS forensic investigation, codenamed Project Clockwork, and revelations published by TimesLIVE on Wednesday concerning a disputed procurement process.

TimesLIVE reported that an executive head of investments at RMA knowingly participated in the assessment and evaluation of bids for a R32bn asset consultancy tender while serving on the investment committee of one of the bidding firms, 27four Investment Managers.

RMA is a mutual insurer licensed under Compensation for Occupational Injuries and Diseases Act (Coida) to administer medical costs, disability payments and pensions for workplace injuries or diseases in South Africa’s mining and metals industry.

Public Interest SA, a non-profit organisation, said it requested the two regulatory authorities to independently examine the forensic findings, scrutinise the RMA board’s handling of the investigation, assess the adequacy of RMA’s governance arrangements and establish whether sufficient safeguards exist to protect the financial security and statutory compensation rights of mineworkers, injured employees and their dependants.

“This is not merely a corporate governance dispute. It concerns the integrity of an institution entrusted with safeguarding the financial security, dignity and statutory compensation rights of some of South Africa’s most vulnerable workers,” the organisation said.

While confidentiality, legal privilege and procedural fairness may justify restrictions on circulation, they cannot legitimately be used to frustrate accountability or prevent the implementation of necessary corrective measures

It said it was concerned by reports that ENS completed and submitted its final forensic investigation report to RMA’s board, but that executive management has not been afforded access to it.

“While confidentiality, legal privilege and procedural fairness may justify restrictions on circulation, they cannot legitimately be used to frustrate accountability or prevent the implementation of necessary corrective measures.”

Public Interest SA said where allegations potentially implicated members of the very board entrusted with considering an investigation, independent oversight becomes indispensable.

It also urged RMA’s shareholders to exercise their lawful governance rights and insist on independent accountability, effective remedial action and the protection of compensation beneficiaries.

RMA occupied a critical position in the occupational injury and disease compensation system, Public Interest SA said.

“These beneficiaries have little influence over the appointment of directors, investment decisions or internal governance disputes. Yet they may ultimately bear the consequences should governance failures compromise the institution’s financial sustainability or operational effectiveness.”

Public Interest SA said the Compensation Commissioner has separately been requested to assess whether the reported governance concerns have implications for RMA’s continued compliance with its statutory compensation responsibilities and applicable licensing conditions under Coida.

The organisation requested written acknowledgement within three working days and an initial response within 10 working days.

Public Interest SA also disclosed that RMA, alongside other entities, recently sponsored its 2026 Whistleblowers Awards & Summit, a relationship it said had neither influenced nor constrained its decision to seek regulatory intervention.

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