Mbalula confirms Road Accident Fund is seeking R17 billion loan

Mbalula confirms Road Accident Fund is seeking R17 billion loan

- The Road Accident Fund is facing a massive financial challenge and will be seeking out a loan to cover a R17 billion shortfall

- Over 100 000 new claims were recorded during the past financial year alone

- Transport Minister Fikile Mbalula says that billions are owed to claimants who have been waiting over 5 years for payment

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The Road Accident Fund is seeking to secure a 'finance facility' in order to cover a staggering R17 billion in unpaid claims with some claimants waiting over 5 years for relief.

This alarming situation was revealed in a written parliamentary response to an EFF question by Transport Minister Fikile Mbalula:

"The revenue received by the Road Accident Fund from the fuel levy is insufficient to address its claims liability."
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Mbalula confirmed that the fund is seeking out a loan to cover the shortfall. Image: GCIS/ Flickr
Source: Twitter

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Mbalula continued to say that this had prompted the fund to explore alternate avenues of income generation, explaining that:

"Consequently, one of the plans included in the RAF's strategic plan and annual performance plan, which is specifically aimed at addressing the unpaid claims debt, is for the RAF to secure a finance facility for this short-term debt and the securing of the finance facility to clear the backlog is targeted for the 2020-21 financial year."

News24 reports that Mbalula had previously confirmed that the RAF liability had grown to over R320 billion, acknowledging cash flow issues.

While this paints a grim picture for those awaiting closure regarding their cases, Mbalula explained that a study had shown the majority of cases are easily settled:

"It is important to mention that a study conducted by Professor Hennie Klopper on the RAF matters set down on the court roll in the Gauteng High Court revealed that 99.56% of matters are settled at the doorstep of court and less than 1% proceed to trial."
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Meanwhile, reported that AfriForum has approached Public Protector Busiswe Mkhwebane to investigate if the ANC had misused public assets when a delegation had flown to Zimbabwe using an SANDF jet.

Both the ruling party and the SA National Defence Force have denied any wrongdoing, saying that the comrade's journey had coincided with that of the Defence Minister.

AfriForum has vowed to take legal action against the ANC, should it be determined that taxpayer funding was indeed abused in the incident.

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