Transport Minister Dipuo Peters had apologised to claimants, service providers, stakeholders, and caregivers affected by the delays in payment following the attachment of the Road Accident Fund’s (RAF) bank account by the sheriff of the court.
Photo: RAF
Peters had directed that the RAF keep those affected informed and abreast with the status quo and ensure that normality was restored urgently.
“Minister Peters finds the attachment of the RAF’s bank account by the sheriff of the court unfortunate and regrettable because the action denies the claimants access to their much needed financial relief from government,” the transport department said in a statement.
On Friday, RAF chief executive officer Eugene Watson said RAF payments had ground to a halt due to the RAF’s bank account being attached by the sheriff of the court.
“This is a result of a few legal firms whose actions have disrupted an established cash management plan which now inconsiderately prioritises them over those who have patiently been awaiting payment.
The attachment had adversely impacted the institution, disrupting its efforts to honour all its obligations and ensure it continued fulfilling its mandate to indemnify, compensate and rehabilitate car crash victims, despite not having sufficient funding.
“We apologise for any inconvenience caused and every effort is being made to resolve the matter speedily in order for the RAF to resume payments," Watson said.
“The immediate payment halt, continued cash constraints and the huge, unfounded liability the minister of finance raised in the medium-term budget speech are continued evidence that the RAF dispensation is expensive, unaffordable, and unsustainable. Change is an urgent necessity,” Watson added.
Several legal firms have reportedly sued the fund for R11 million.
