Protocols have been put in place to resolve disputes.
The new Road Accident Fund (RAF) board, which was established in August to restore governance amid allegations of corruption at the entity, has announced the resumption of claim payments and a plan to reduce backlogs.
Transport Minister Barbara Creecy dissolved the previous board due to its failure to act in the best interests of the RAF and to fulfil its fiduciary duties.
Creecy wrote to both President Cyril Ramaphosa and the Special Investigating Unit (SIU) to ask that they expand the scope of the SIU’s investigation into the RAF.
Speed payments
The RAF’s interim board is chaired by former National Treasury Procurement Officer Kenneth Brown.
The board said following a series of meetings with various stakeholders, including the legal fraternity and service providers, it has taken steps to “speed up” the payment of all outstanding claims.
“In considering this programme of action, the board also wanted to ensure that a sustainable claims management system is put in place that should eliminate the existence of any claims backlogs in future.
ALSO READ: Dramatic change is coming at the RAF
“RAF has commenced payments against claims older than 180 days, estimated to be more than R20 billion. This initiative forms part of the broader turnaround programme aimed at tackling systemic delays and restoring confidence in the Fund’s claims environment,” it said.
Progress
The board said that since engaging with stakeholders, it had:
- Completed a comprehensive review of all claims outstanding beyond 180 days, with clear prioritisation for settlement.
- Commenced with R3.3 billion payments being disbursed in the past two weeks.
- Embedded controls to ensure supporting documentation is reviewed promptly to avoid any further administrative delays.
- Strengthened monitoring systems to track both paid and outstanding claims to ensure compliance, accountability, and transparency are in place.
“Protocols have been put in place to ensure resolutions to these matters. In this regard, the contact details of specific regional managers have been communicated to all plaintiff attorneys and suppliers to address specific matters that may still delay payments,” the board said.
Avoid delays
The Board urges all stakeholders to continue working with us to avoid unnecessary delays and appreciates their support and spirit of collaboration as the RAF works tirelessly to bring back order and credibility to the fund,” it said.
The board said it was aware of the financial and emotional strain that delayed payments have caused for claimants and their families.
“We reaffirm our responsibility to resolve this matter with urgency and transparency,” the board said.
ALSO READ: Creecy dissolves RAF board amid governance and operational failures
