DA calls for Road Accident Fund to account on R800mil a month losses

3 February 2015

The DA has today formally requested Minister of Transport Dipuo Peters and the CEO of Road Accident Fund, Dr Eugene Watson, to appear before the Portfolio Committee on Transport to account for the undue delays in paying out road accident claims.

The RAF currently owes R6.2 billion to claimants and is operating on a shortfall of R800 million a month. The exorbitant monthly losses, which are avoidable, are a result of poor management and leadership at the expense of road accident victims and taxpayers.

Minister Peters and Dr Watson should appear before the committee and clarify what measures are currently in place to prevent further financial loss in the event that Treasury grants the RAF the funding it has requested.

They must also account for what measures are being put in place to ensure that claims are consolidated quicker to avoid legal action against the entity. The RAF's legal bill currently stands at R4.6 billion.

It is vital that accountability prevails at the RAF so that South Africa's road users are assisted in their time of need without unnecessary delays.

Statement issued by Manny de Freitas, DA Shadow Minister of Transport, February 3 2015

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