Road Accident Fund can’t pay wages, accounts attached

[Jopie Fourie]

The Road Accident Fund (RAF) has been unable to pay expenses like salaries because its bank accounts have been attached.

In the meantime, the fund owes R17 billion to people across South Africa who have suffered losses due to road accidents, but are still waiting to receive their compensation.

In an urgent application in the Pretoria High Court this week, the RAF asked for two things – that the Sheriff of Pretoria East return control of its eight Absa bank accounts to it, and that the court make a permanent special arrangement for the RAF that would give it the leeway to pay claims within 180 days instead of 30.

Road Accident Fund can’t pay wages, accounts attached | Citypress

The Road Accident Fund (RAF) has been unable to pay expenses like salaries because its bank accounts have been attached.

city-press.news24.com

 

[Vrotappel]

Collins Letsoalo, the RAF’s acting CEO, painted a grim picture in the fund’s court papers.

He said the Sheriff “often” freezes money in the RAF’s bank account. In this case, it was at least 346 motorists to whom the RAF owed R173 million in terms of court orders.

Letsoalo said it was not that the RAF didn’t want to pay, but that it simply could not do so.

The RAF gets R3.5 billion from fuel levies every month, but has to pay out on average R4.3 billion in claims. This is before it has even paid salaries or other expenses.

South Africa. Incredible.

 

[Lupus]

Scrap it, third party insurance mandatory with your cars license m

 

[Tokolotshe]

Scrap it, third party insurance mandatory with your cars license m

Just remember to scrap it from the fuel levies as well ...

 

[R13...]

Scrap it, third party insurance mandatory with your cars license m

Government refuses on the argument third party would be more expensive.

 

[Lupus]

Just remember to scrap it from the fuel levies as well ...

Well that's how to scrap it no??

 

[ProfA]

Eight accounts for what?

 

[Gtx Gaming]

Shut it down! 3rd party insurance law needs to come back!

 

[Splinter]

In my very honest opinion, the RAF is something that is nothing more than a cash cow for law firms.

Who exactly are being paid R4 billion a month?

I don't know anyone who has actually claimed.

 

[Gtx Gaming]

Eight accounts for what?

Multiple tenders at the same time

 

[Splinter]

Government refuses on the argument third party would be more expensive.

There is something very, very wrong with the RAF fund.

 

[daveza]

and that the court make a permanent special arrangement for the RAF that would give it the leeway to pay claims within 180 days instead of 30.

No problem, as long as you can afford 5 months interest.

 

[MachoPants]

WTF has all the money gone?

 

[daveza]

WTF has all the money gone?

Are you asking regarding Eskom, SABC, Denel, Prasa, SAA or RAF ?

Answer is the same for all of them.

 

[ProfA]

WTF has all the money gone?

Rhetorical question, no? Money went where ALL government money goes. To corruption, mismanagement, incompetence......take your pick.

 

[chrisc]

My personal injury lawyer friend tells me dealing with the RAF is incredibly time wasting. They continually lose documents, muddle up claimants, agree to pay and then do not, or pay under 10%

It’s his opinion that the money has been diverted or stolen

 

[MachoPants]

Rhetorical question, no? Money went where ALL government money goes. To corruption, mismanagement, incompetence......take your pick.

Of course rhetorical. EVERYTHING they touch is failing

 

[Spliffcat]

Stolen.

 

[joker08]

What does "accounts attached" mean ?

 

[Jopie Fourie]

What does "accounts attached" mean ?

The courts instructed the bank to freeze the account and prevent them from accessing it.