'RAF has recorded a R3.2 billion surplus for first time in decades' - Mbalula

TheChamp

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Transport Minister Fikile Mbalula is optimistic they are on the right path to turn the troubled Road Accident Fund (RAF) into a sustainable and equitable road accident scheme.

For years, the RAF has struggled with financial woes, but during a media briefing on Monday, Mbalula said that the turnaround strategy has been yielding results.

 

MightyQuin

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This means nothing. It is easy having a surplus, when you rake in R2bn per month, but take 6 years to pay out a claim.

Quite a quick "turnaround" during the last 6 months...when they had assets attached by lawyers on behalf of clients not getting paid.

Just another corrupt scam...
 

Johnatan56

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Writs of execution have reduced by more than 50%, through a legal strategy and stratification of the debt book.

"The short-term liability has reduced by R2.2 billion, from R17 billion to R14.8 billion. Current assets have increased, including cash position, by more than R4 billion," Mbalula added.

The RAF collects R43 billion a year through the fuel levy, with only R26 billion of its annual revenue spent on actual compensation.

"About R17 billion is spent on administrative costs annually. Of this, R10.6 billion goes to legal fees. More than R2 billion is spent on medical costs.
So this increase just means they basically didn't have lawyers to hire to represent them in court, so claim payout reduced so they end up with a surplus, while failing their mandate.
Great job.
 

Geoff.D

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So this increase just means they basically didn't have lawyers to hire to represent them in court, so claim payout reduced so they end up with a surplus, while failing their mandate.
Great job.
Ja, trying to get a pat on the back while failing in their main mandate. They should NEVER have a surplus.
Either the collections are too much and should be reduced, or they have failed to pay out what they should have.
Not a feather in their cap, just another long list of failed SOEs.
Presumably, the failure could be written off against someone slipped up an missed an opportunity to steal.
 

rvZA

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Claims are not being paid out. This is stolen tax money and it will be squandered real soon. Rather pay out legitimate claims, as it was supposed to do.
 

TheChamp

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By any measure, four decades is a long time for any organisation to be running on fumes. Somehow, the Road Accident Fund, a state-owned insurance scheme that provides compensation to victims of car crashes, has managed to do just that.

The fund, which is housed in Fikile Mbalula’s transport department, reported a surplus on its claim liabilities for the first time since 1981 in the financial year to the end of March compared with the previous year.
 

RVQ

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"The situation is further exacerbated by a number of fraudulent claims the RAF has to contend with. The RAF model was centred on litigation, with 99% of the claims settled just before trial. The legal costs had been growing exponentially over the years from R800 million in 2008 to R10.6 billion in 2019," Mbalula said
Yup, the RAF Sharks (Lawyers) who built fortunes on specialising on RAF claims, taking hefty percentages of pay-outs leaving the actual claimant with next to nothing, another lucrative game that only places a huge burden on the nation at the benefit of a few low life’s, hope they start pushing ahead with trials just to prove a point.
 

FaSMaN

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Expect to see it depleted in the next few months by dodgy tenders or payouts XD
 
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