SA Transport Committee Concerned by Road Accident Fund Liquidity

The Portfolio Committee on Transport has raised concerns about the liquidity challenges facing the Road Accident Fund (RAF). Committee Chairperson Mr Donald Selamolela said the committee had noted the assurance that the department was exploring funding models for the RAF, with sustainability as a priority. "We appreciate the progress, and we strongly believe that the appointment of a new permanent CEO will assist the RAF. We hope the entity will transition and become financially stable." Follow us on WhatsApp | LinkedIn for the latest headlines On Tuesday, Minister Creecy led a departmental delegation comprising entities such as SANRAL, the RAF and ACSA to brief the committee on the annual audit and annual performance plans in preparation for Parliament's budget review process currently under way. The RAF indicated that it paid out R25 billion monthly while receiving only R4 billion into its coffers. The committee heard that the RAF would not recover from this financial situation and that, consequently, claims took a long time to be paid. Minister Creecy said the RAF wanted to reduce its dependence on the fuel levy, especially given the rise of electric vehicles. She added that the focus was on a no-fault system that would not require determining who was responsible, an approach that currently results in costly litigation. Mr Selamolela said the irregular expenditure was concerning and that the committee was determined to travel the road with the RAF. "We are going to support the entity and walk this journey together, especially as it addresses the challenges it faces. Importantly, we note that the RAF Board has decided to revert to the government-wide accepted GRAP 19 accounting standard and that the entity has withdrawn from the costly litigation against the Auditor-General's office." The committee was informed that several interventions were under way at the RAF and that the entity expected to see results in the outer years. Read the original article on Parliament of South Africa . AllAfrica publishes around 600 reports a day from more than 90 news organizations and over 500 other institutions and individuals , representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica . To address comments or complaints, please Contact us . AllAfrica is a voice of, by and about Africa - aggregating, producing and distributing 600 news and information items daily from over 90 African news organizations and our own reporters to an African and global public. We operate from Cape Town, Dakar, Abuja, Johannesburg, Nairobi and Washington DC. Get the latest in African news delivered straight to your inbox By submitting above, you agree to our privacy policy . We need to confirm your email address. To complete the process, please follow the instructions in the email we just sent you. There was a problem processing your submission. Please try again later.