The Road Accident Fund (RAF) is in such a dire financial position – exacerbated by the Covid-19 pandemic – that it is seeking an extension of 180 days to pay its debts, says a report in The Mercury.

Its chief executive, Collins Letsoalo, said in papers filed at the Gauteng High Court (Pretoria) that he knew this was an extraordinary order to request, but it was difficult times and it was in the public interest for the RAF to continue its work.

The application, which is still to be heard, was prompted after a law firm obtained a writ of execution order against the RAF to sell its immovable property. The sheriff earlier removed immovable property such as computers and furniture from one of the RAF’s offices in Pretoria to sell the property and to pay the RAF victims who had obtained orders in their favour.

But the RAF argues that if its property is taken, it would not be able to do its work and thus could not pay its dues.

The RAF is asking the court to place any orders it makes in favour of claimants waiting to be paid on ice for 180 days to give it some breathing space, without its equipment and office supplies being taken.

Letsoalo said the RAF was in a dire financial position, and its liabilities continued to grow. He said if the situation was not managed with a 180-day reprieve, there was a real risk of the RAF collapsing financially or completely. This would make the RAF unable to pay anyone who was injured in a vehicle accident.

Letsoalo said ‘the losers will be the victims of vehicle accidents’ if the RAF's property is attached. The RAF asked the court to also order that it report back within 12 months regarding its financial position so that it could be decided whether this special disposition should remain in place, if granted.

The Mercury report notes that after a law firm attached the RAF’s furniture and other items last month at its largest branch in Menlyn, the fund launched an application for the sheriff to return it.

The court earlier granted an interim order in which it said the law firm and the sheriff must state reasons by 28 October why the goods should not be permanently returned. The items have, in the meantime, been returned to the RAF.

The application by a leading Johannesburg law firm to have the RAF liquidated and another for Letsoalo to be removed as chief executive were removed from the roll yesterday. Maponya Attorneys, which launched the application, said it was not ready to proceed yesterday, but expected the matter to be heard in the first two weeks of December.

Full report in The Mercury

RAF founding affidavit