ZELDA VENTER
THE time has come for South Africa’s leadership to take action and restore order and accountability to the Road Accident Fund. Without immediate intervention, the RAF will become yet another failed state-owned entity.
This is according to attorney Gert Nel who specialises in RAF matters. Nel expressed his concern about how the fund is being operated.
“Fuel levy payers’ money is wasted, real lives and livelihoods are at risk, with road crash victims bearing the brunt of systemic inefficiency and bureaucratic indifference.”
He said the RAF is an institution charged with compensating road crash victims, yet it is deliberately distorting its purpose by bypassing legal obligations and operating in blatant defiance of court rulings.
He accused the fund’s leadership of evading accountability while systematically denying justice to thousands of vulnerable victims.
Nel said the cornerstone of the RAF’s defiance lies in its claim that it operates as a “social benefit scheme”.
“By adopting this label, CEO Collins Letsoalo argues that the RAF is exempt from the rigorous reporting requirements applied to social insurance entities. However, this assertion has no legal basis.”
Nel pointed out that the courts have consistently found that the RAF is, by design, a social insurance scheme. Its purpose, as defined in the RAF Act, is to compensate victims of vehicle accidents for loss and damages - a mandate rooted in insurance principles.
“By misclassifying itself, the RAF’s leadership has bypassed the financial reporting requirements and adopted an accounting standard intended for social benefit schemes.
This allowed the RAF to understate its liabilities, slashing reported obligations from R300 billion to R30 billion almost overnight, and creating a deceptive impression of financial stability. Despite the courts ruling this approach as unlawful, the RAF remains steadfast in its defiance,” he said.
In referring to a notice issued in 2022 by the fund, which introduced “onerous” documentary requirements for claimants, Nel said this is inconsistent with the law.
He pointed out that this resulted in 97% of claims being rejected as “non-compliant,” leaving only 3% eligible for processing.
The courts have declared Board Notice 271 of 2022 unlawful because it creates a significant barrier to accessing the RAF. Yet the fund continues to enforce it, he said.
According to Nel, the fund’s leadership demonstrates a blatant disregard for the rule of law, which leaves road crash victims without hope.
“The consequences of these unlawful reforms are devastating. Not only is it impossible to determine what the RAF’s actual liabilities are, but they are also excluding deserving victims. Claimants who succeed in claiming directly from the RAF are victimised, and many are forced to accept offers far below fair settlement.”
Nel added: “The RAF’s failures represent a profound betrayal of South Africans who fund the institution through the fuel levy. Immediate action is required.”
In hitting back, the RAF Head of Corporate Communications, McIntosh Polela, said it must be noted that Nel is a former employee of the RAF who “set up his business based on the inefficiencies of the fund”.
“This is a continued crusade aimed at attacking the current transformation of the RAF because the status quo benefits Mr Nel,” he said.
In defending some of Nel’s accusations, Polela said the case of the legality of the Board Notice 271 is still in court. He explained the purpose of the Board Notice as a measure to obtain all claim documents so that claims can be assessed within 120 days.
“Before this Board Notice, unethical attorneys used to submit claims with outstanding documents, and this prolonged the claim assessment, Polela explained.