Road Accident Fund facing financial collapse

schumi

schumi

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.Johannesburg - Auditor-General Kimi Makwetu has warned that the cash-strapped Road Accident Fund (RAF) is facing the risk of financial collapse.

Makwetu found that the RAF incurred a net deficit of R26.3 billion as of March and its liabilities exceeded assets by R206bn.

“A material uncertainty exists that may cast significant doubt on the public entity’s ability to continue as a going concern,” he said.

Makwetu made his findings in the audit report submitted to Parliament as part of the fund’s annual report.
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More at : https://www.iol.co.za/motoring/industry-news/road-accident-fund-facing-financial-collapse-17406106
 
Makwetu found that the RAF incurred a net deficit of R26.3 billion as of March and its liabilities exceeded assets by R206bn.

“A material uncertainty exists that may cast significant doubt on the public entity’s ability to continue as a going concern,” he said.
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That is verging on British levels of understatement.
 
Can we just can this make-lawyers-rich fund and divert the money to something useful?
 
R13... said:
How do they continue to operate with such a position?
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“The fund settled and paid a total amount worth R34.6bn of claims during the reporting period compared to R29.8bn in 2016/17. This amount is almost R4.8bn more compared to the 2017/18 financial year,” Xingwana-Jabavu said.

R34.6 billion - I suppose this money goes back to citizens/organizations that claimed?
 
Pitbull said:
Enforce mandatory 3rd party insurance coupled with liability and kill off the RAF.
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They can't even enforce that all road users are licenced. Or that their vehicle is road worthy. I support your idea fully, but in terms of it actually working.. Eish.
 
GhostSixFour said:
They can't even enforce that all road users are licenced. Or that their vehicle is road worthy. I support your idea fully, but in terms of it actually working.. Eish.
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If a person is willing to take the risk of being personally responsible for damages caused instead of the RAF, I'm ok with them trying to not have insurance and need it. They will lose their house, car, bank balance and the likes. They will be ripped to shreds. It would be much easier to just pay the R 100 a month. But some people will be stupid enough to ruin themselves financially for life I guess :D
 
Pitbull said:
If a person is willing to take the risk of being personally responsible for damages caused instead of the RAF, I'm ok with them trying to not have insurance and need it. They will lose their house, car, bank balance and the likes. They will be ripped to shreds. It would be much easier to just pay the R 100 a month. But some people will be stupid enough to ruin themselves financially for life I guess :D
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In other "unrelated" news - the number of hit and run accidents in SA seems to have increased exponentially. :)

How would someone claim in that case?
 
SA is not the place to experiment with common sense, accountability and merritt. Take those untested colonial attitudes elsewhere.
 
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