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South Africa: Fundamental Reform of the Road Accident Fund Is Urgently Needed

South Africa: Fundamental Reform of the Road Accident Fund Is Urgently Needed

The saying that “a picture is worth 1,000 words” must be tweaked to “a meme is worth 1,000 words”. I recently received a meme from an acquaintance that, as a social protection expert, motorist and, most importantly, a taxpayer, got me thinking. It was a picture of a man’s hand opening a lid of a potjie on a fire with a R100 note. It is captioned: “Your boyfriend at a family gathering after receiving Road Accident Fund money.” As far-fetched as this may seem, such a phenomenon is plausible. For their benefit, doubting Thomases are kindly invited to watch the television show, I Blew It, which shares heart-wrenching stories about people in South Africa who received a monetary windfall and squandered it. Although there are odd cases of those who received inheritances, particularly death benefits and lottery winnings, the vast majority of the stories are about those who had Road Accident Fund

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Road Accident Fund has lost control. It's R300 billion in debt

Road Accident Fund has lost control. It’s R300 billion in debt

South Africa faces dire consequences if the RAF goes bust, warns Wayne Duvenage, CEO at Organisation Undoing Tax Abuse (Outa). The Road Accident Fund (RAF) has obtained a court order preventing successful applicants from claiming any of the Fund’s money or assets. The Fund has new management, but it is under investigation and faces imminent collapse. If the RAF collapses, drivers will face lawsuits and applicants will battle for compensation. The Money Show’s Bruce Whitfield interviewed Wayne Duvenage, CEO at Organisation Undoing Tax Abuse (Outa). Duvenage warned years ago that the RAF is “a plunder pot of massive proportion”.

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Road Accident Fund faces imminent implosion

Road Accident Fund faces imminent implosion

By Tania Broughton The Road Accident Fund (RAF) has secured an extraordinary court order preventing successful claimants and their attorneys from laying claim to money in its bank account and other assets in order to recover what they are owed. The fund is facing imminent implosion, the consequences of which will be disastrous. A constitutional crisis is brewing, Pretoria High Court Judge Pieter Meyer (with Judges Leicester Adams and Johann van der Westhuizen concurring), said in Friday’s ruling. Judge Meyer explained that implosion of the fund will trigger a section of the Road Accident Fund Act which bars any claims against it for compensation. This, in turn, will reinstate the common law, leaving drivers open to being sued, and claimants struggling to get compensation from “impecunious”, penniless defendants. In its application, the fund sought an order to suspend all writs of execution and attachments based on court orders already granted or

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Road Accident Fund ordered to pay claimant R11.5m

Road Accident Fund ordered to pay claimant R11.5m

By Zelda Venter Pretoria – The Road Accident Fund (RAF) has been ordered to pay an accident victim, now a quadriplegic, R11.5 million in damages to help him in making his life easier. Gauteng High Court, Pretoria, Acting Judge Anthony Millar described the circumstances in which Henri Lombard now found himself in as “an immensely tragic matter”. The judge said it was evident from the evidence that Lombard’s life had been irreparably altered by the injuries he sustained in a motor vehicle accident in which he was passenger in June 2018. At the time of the accident, Lombard, now 25 and one of twin brothers, was attending his final-year apprenticeship towards an N2 diploma. He was named student of the year, yet would never be able to work again, the court was told. He suffered severe spinal cord injuries and can now only move one of his arms slightly. He

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Teenager Mmakgoshi Edith Molala involved in accident waits 12 years for justice

Teenager Mmakgoshi Edith Molala involved in accident waits 12 years for justice

By Zelda Venter Pretoria – Nearly 13 years ago, a teenager was about to start her matric year when she was a passenger in a car which was involved in an accident. Mmakgoshi Edith Molala, who was 17 in January 2008 when the accident occured, waited more than 12 years for justice. She at first lodged her claim directly to the Road Accident Fund (RAF). Nothing came of it and the fund later told her the claims had prescribed. Seven years later an attorney took on her plight, resulting in a judge recently ordering that she should receive more than R8-million from the RAF. Molala sustained a severe head injury with facial scarring that resulted in mood disturbances, memory and concentration difficulty, personality and behavioural changes as a result of her injuries. She was at the time hospitalised for more than a month. Shortly after the accident her mother made

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Road Accident Benefit Scheme bill is finally rejected

Road Accident Fund Benefit Scheme dismissed

The Star Early Edition 24 Aug 2020 WITH GEORGINA CROUTH Parliament’s Transport Committee finally rejects bill in its entirety, saying it does not agree with it SIX years after the Road Accident Benefit Scheme (Rabs) bill was first proposed to eventually replace the insolvent Road Accident Fund, the Portfolio Committee on Transport in Parliament dispensed with the bill. The controversial – and unconstitutional – bill was first brought before the committee in 2017, which triggered an outcry from the medico-legal fraternity and opposition parties. Rabs would have run in parallel with the RAF. On Friday, the committee announced that it did not agree with the bill. It rejected the bill “in its entirety” and said it was of the view that amendments to the RAF Act 56 of 1996 (as amended) may be more prudent at this time. What these amendments would entail is unclear but it’s believed to include

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RABS Bill dismissed: ‘Now we can get to work on fixing RAF’

thesouthafrican.com The RABS bill has long been suggested as an alternative to the Road Accident Fund, but has faced a great deal of scrutiny over several years. The controversially proposed Road Accident Benefit Scheme (RABS) Bill that was set before parliament nearly three years ago has been rejected on Wednesday 19 August, providing relief for proponents of the existing Road Accident Fund (RAF) and personal injury attorneys, who were set to be cut out of claims processes by the proposed law. The law sought to remedy a plethora of issues currently afflicting the RAF – including drawn out claims processes, backlogged court rolls, and contentious earnings by legal practitioners – but was widely criticised for being “anti-poor” and for being designed on a controversial “no-fault premise”. DA WELCOME SCRAPPING OF PROPOSED RABS BILL The Democratic Alliance (DA) welcomed the decision taken today by Parliament’s Portfolio Committee on Transport, with the

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Collins Letsoalo appointed new boss of the Road Accident Fund

By Sibahle Moth Cabinet has approved the appointment of Collins Letsoale as the new permanent Chief Executive Officer (CEO) of the Road Accident Fund (RAF). This was confirmed in a statement by Transport Minister Fikile Mbalula on Friday. “We welcome this decision and we believe this appointment will go a long way in placing the RAF on a stable footing. “Mr Letsoalo joins the RAF at a time when it is facing daunting challenges, and requires a steady hand to guide it through the change into the Road Accident Benefit Scheme once the enabling law has been passed by Parliament. “

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Wheels turn for RAF

Wheels turn for RAF as it focuses on paying victims

Fund’s new operating model aims to finalise claims within 120 days, not four to five years Cape Argus 3 Aug 2020 GEORGINA CROUTH & DAVID RITCHIE THE EFFORTS of the Road Accident Fund (RAF) to focus on paying accident victims are proving fruitful, despite failure to have it declared an essential service during the lockdown. The RAF has been plagued by inefficiencies for years to the detriment of crash victims and their dependants. The fund, which has a shortfall of more than R17 billion, has admitted to having neglected its primary mandate to settle and investigate claims, by focusing on unnecessary and costly legal battles. In February, acting chief executive Collins Letsoalo declined to renew contracts for the fund’s panel of attorneys and requested that they hand over all unfinalised case files. The 85 aggrieved attorneys took the matter to the high court in March, where Judge Norman Davis ruled

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