The Road Accident Fund says it needs R2bn in the current financial year to meet its obligations, Rapport reports. RAF spokesperson Phumelela Dhlomo said the fund had fallen behind with payments to 4 767 by last week. Outstanding payments amount to R11.37bn and total contingent liability amounts to R206.1bn.

Dhlomo says although the number of claims against RAF has declined considerably since the 2008 legislative amendments, the fund is still dealing with 6 391 claims from the pre-2008 era. Approximately 12% (R1.93 per litre) of the fuel price is already apportioned to the RAF without any sign of financial improvement.

The RAF’s functions are further hampered by continuous visits by the sheriff, Dhlomo added.

It has been reported that the RAF is renting basic office furniture such as chairs to prevent attachment by the sheriff. The update on RAF’s financial woes comes on the eve of public hearings on the proposed new legislation for a no-fault Road Accident Benefit Scheme. ‘Although the RABS will not alleviate the financial burden of the fund immediately, it is expected to lead to a more affordable and sustainable scheme in the long-term,’ Dhlomo said.

Full report in Rapport (subscription needed)