The Road Accident Fund (RAF) has for decades been technically insolvent and beset by financial scandals.
It has enriched generations of lawyers who cream off millions from payments made to the hapless victims of the carnage and disorder on SA roads.
There is no doubt that given the proportion of people in SA who are poor or indigent, yet are forced to commute long distances in public transport that is often dangerous, we need a system that takes care of those who suffer as a result of the mayhem on our roads.
Last year, transport minister Fikile Mbalula joined RAF CEO Collins Letsoalo to announce that the RAF was turning the corner and had notched up a R3.2bn “surplus’’, which reflected the success of a cost-cutting drive.
It seems incredible that a settlement of millions was handed over without ensuring the funds would indeed be spent on the victim and her welfare
But far from fixing the problem, the RAF strategy of adopting a new accounting standard seems to have obscured the R300bn liability that it would face if all claims were paid out.
This has put the RAF and Mbalula on a collision course with auditor-general Tsakani Maluleke, who is refusing to sign off on the fund’s financial statements.
According to the RAF, this will hinder its attempts to raise R14bn from private banks to keep it in business.
Elsewhere in the paper today we report on the tragic case of a 16-year-old girl who suffered life-altering injuries in a traffic accident. It appears that the RAF irregularly paid out several millions to the girl’s father, who is now engaged in a feud with other family members over the money.
It seems incredible that a settlement of millions was handed over without ensuring the funds would indeed be spent on the victim and her welfare.
The RAF assures us it is investigating, but how many similar cases are there that have yet to be uncovered?
The state must fulfil its obligation of care. But handing out millions so lawyers and unscrupulous family members can enrich themselves serves no-one. Neither the unfortunate victim of an accident, nor the country.
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