DA calls for an investigation into Road Accident Fund
21 April 2015
The Democratic Alliance (DA) is in possession of evidence that appears to document large-scale fraud allegedly taking place at the Road Accident Fund (RAF). The evidence, in the form of letters from complaint attorneys to claimants which the media can request, illustrates how the RAF essentially appears to sue itself in order to maintain a certain cash flow. This delays claims made by road crash victims. Based on the documents leaked to us, as well as investigations that we undertook, this appears to be fraud and injustice at the highest level.
The RAF’s mandate is to compensate applicants who are victims of road accidents, assisting them with medical expenses and other matters related to road accidents. This entity was not created to line the pockets of the few at the very top at the expense of thousands of South Africans who need the compensation.
The DA will lay criminal charges against RAF CEO, Eugene Watson, on behalf of all those road accident victims who have waited and are still awaiting their pay-outs. Charges will be laid today at 11h00 at Cape Town Central Police Station. (Media are welcome to be present when we lay criminal charges).
This information with allegations contradicts Mr Watson’s previous assertion that the RAF is at the service of road accident victims. In addition, the RAF has an alleged ongoing campaign claiming that “lawyers steal the victim’s money” when it is clear that the RAF is precluding victims from getting the money owed to them and thus causing them to get less than what they are due.
During March 2015 it was reported that millions are lost in the RAF due to fraudulent syndicates and greedy professionals. Now it seems that top RAF officials are involved to such an extent that it will make greedy lawyers look good.
In post-budget briefings in Parliament, Finance Minister, Nhlanhla Nene, has shielded the R98 billion owed by the RAF which, according to him, was not due to mismanagement but to its inefficiency in processing claims.
The RAF also received further funding benefits from a 48% increase in fuel levy after a mere 14% was seen to be enough for the last 7 years.
Mr Nene is clearly ignorant of the 50% decline in claims over the same period and simply accepted Mr Watson’s presentation that more money is needed. Apparently no questions were raised about how the enormous legal expenses came to be.
We believe that the documentary proof and the allegations contained therein in our possession justifies an independent forensic investigation. We will therefore be writing to Transport Minister, Dipuo Peters, to institute such an enquiry into this matter.
Eugene Watson should be suspended pending the outcome of such a probe as we would want to see the RAF continuing to do its work uninterrupted whilst such an investigation is taking place.
Should Minister Peters deny our request we will ask her to make public the reasons for not launching such an inquiry while thousands of South Africans suffer the financial consequences of non-payment.
Statement issued by Chris Hunsinger MP, DA Shadow Deputy Minister of Transport, April 21 2015
