RAF’s fixed revenue can’t match rising accident claims, Scopa hears

TheRoad Accident Fund(RAF) interim board has told parliament that even if the fund saves money internally, it still won’t cover the massive growing claims bill. This is because the RAF already owes around R100bn in unpaid claims and most of the funds are mismanaged by the entity. As a result, Treasury has withheld further money from the institution.

Speaking before the Standing Committee on Public Accounts (Scopa), board chairperson Kenneth Brown said internal savings would not resolve the problem. “If we were to change the model and move to direct claims, we could potentially save a significant amount of money. Maybe that view is right, maybe it’s wrong, but we need to brainstorm around it,” he said.

He added that default judgements last year amounted to R6.6bn and now totalaround R15bn. Alfredina Themba, chairperson of the audit and risk committee, said the system itself is structured in a way that makes matching revenue and liability inherently difficult. She said the organisation is focused on clearing a backlog of claims and accurately identifying liabilities.