Embattled Road Accident Fund to get permanent board
The government is hoping that the appointment of the board will help stabilise the cash-strapped fund, which has been struggling to meet its obligations
The government says the appointment of a permanent board of the troubled Road Accident Fund (RAF) will be key to stabilising the entity. Transport minister Blade Nzimande dissolved its board in July due to “serious divisions” and dysfunction. He appointed an interim board to address the governance challenges that had bedevilled the organisation. The RAF pays compensation for those injured in car accidents. However, it has been struggling to fulfil its mandate largely due to poor management. Earlier in 2018, the Treasury pointed out that the claims received by the fund were significantly larger than the income generated from the road accident fuel levy. Of the 52c-a-litre increase in the fuel levies announced in the 2018-19 budget, 30c would go towards the RAF to stabilise short-term liabilities at about R8.5bn a year, the Treasury said. In the medium-term budget policy statement tabled in parliament in October, the Treasury described the RAF and the SA National Roads Agency (Sanral)...
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