“Payments have ground to a halt due to the RAF’s bank account being attached by the Sheriff of the Court‚” said CEO Dr Eugene Watson. “This is a result of a few legal firms whose actions have disrupted an established cash management plan, which now inconsiderately prioritises them over those who have patiently been awaiting payment.” CLICK BELOW to compare car insurance quotes across a variety of trusted car insurance companies and find the best deal suited to you!
“A balance of R8‚2 billion worth of payments to 5200 creditors remains queued for payment over and above all that is paid.”The attachment‚ removal, and sale of RAF assets was thus, “an unfortunate common reality”‚ Watson said.
“This reality has persisted, despite a 50c increase in the RAF fuel levy two years ago. The fund can only pay what it is able to. The cash management plan put in place two years ago endeavours to maintain regular payments to creditors.”This latest attachment has badly disrupted the fund’s bid to fulfil its mandate. Namely, “to indemnify‚ compensate, and rehabilitate car crash victims” - despite the ongoing lack of funds‚ he said.
“We apologise for any inconvenience caused. Every effort is being made to resolve the matter speedily in order for the RAF to resume payments.”Watson also said the halt in payments, ongoing cash constraints, and the “huge‚ unfounded liability” the minister of finance raised in the medium-term Budget speech were “continued evidence that the RAF dispensation is expensive‚ unaffordable, and unsustainable”.