The Road Accident Fund has no plans to force the government to increase the petrol price by 25 cents per litre, the RAF Board said on Wednesday.
RAF board acting chairperson Saths Cooper was responding to a report in Sake Beeld that the RAF and the Law Society of South Africa (LSSA) would force the government — through a court order if necessary — to increase the petrol price by 25c/litre in order to remedy the RAF’s ”terrible financial situation”.
Cooper confirmed that a meeting was called with top officials of the LSSA on June 7 but added that at no time during the discussions was it confirmed that a 25 cents per litre increase had been demanded from the government.
”On the contrary, we — the RAF board and executive management team — have over the past weeks stated that a strategic recovery plan has been initiated that will remedy the current situation without requesting government for a further increase of the current fuel levy. The recovery plan aims to streamline the claims processing system that has been put in place,” Cooper said.
He added that the fund had already introduced a new weekly payment system intended to improve service delivery.
”It is also aimed at eliminating fraud and corruption, including a verification process that claimants do exist and that accidents actually did occur.”
Cooper said that the RAF was working closely with various external agencies, such as the SA Police Service and the National Prosecuting Authority, to uncover fraud and corruption.
”In the last financial year, there have been over 450 prosecutions for fraud against the fund — this statistic does not include cases of fraud between the claimants and their agents — with over 900 cases pending.”
Cooper said that if fraud and corruption could be rooted out, the RAF, would be in a much better position to execute its mandate of providing compensation to persons who have suffered loss or damage wrongfully caused by motor vehicle accidents in South Africa.
”In this regard, if there were no fraud and corruption, there would be no need for any cash injection by government.”
Cooper said that the RAF board had resolved not to approach the treasury for further fuel levy increases and had communicated this to the minister of transport.
This, Cooper said, was also confirmed by the minister during his Budget vote speech on June 17 in Parliament.
”Instead, it is determined to resolve the susceptibility to fraud and corruption that exists in the RAF environment first,” Cooper said.
Jan Stemmett, co-chairperson of the Law Society of South Africa on Wednesday confirmed the profession’s undertaking to support the RAF if it should seek an increase in the fuel levy.
He further noted that the minister of transport had now indicated that it would not be necessary.
Stemmett also confirmed the profession’s continued support of the RAF in sorting out its problems. – Sapa