The Road Accident Fund says it posted a surplus of R3.2 billion for the 2020/2021 financial year. This follows a deficit of R5.2 billion the previous year.
The entity has been battling financially over the years as a result of more claims from road crashes as well as fraudulent claims.
The gradual stabilising of the entity has been attributed to a new board that was appointed 18 months ago.
Transport Minister, Fikile Mbalula, made the announcement during a media briefing in Pretoria on Monday.
Video: Road Accident Fund reduces liability to R20 billion
“It is clear that the decrease in finance and administrative costs from R209 million in 2020 to R90 million in 2021, was a significant contributing factor. This is testament to the RAF 2020/25 strategic plan which prioritises reducing administrative costs.”
REDUCING THE LIABILITY OF THE ROAD ACCIDENT FUND
We are on the right path and we will continue to work towards a sustainable and equitable road accident benefit scheme. pic.twitter.com/Q68u5yyjeQ
— |Mr Fix (@MbalulaFikile) June 7, 2021
TODAY: ANNOUNCING THE REDUCTION OF RAF LIABILITY
Together with the RAF board led by the Chairperson, Ms Msibi and RAF Executive led by its CEO, Mr Collins Letsoalo we announced measures taken to reduce the liability of RAF since 2019. pic.twitter.com/eVHOPX5E3c
— |Mr Fix (@MbalulaFikile) June 7, 2021
