That\u2019s what The Road Accident Fund (RAF) was today forced to tell its claimants\u201a service providers and the caregivers\u201a on whom many road accident victims rely.
\u201cPayments have ground to a halt due to the RAF\u2019s bank account being attached by the Sheriff of the Court\u201a\u201d said CEO Dr Eugene Watson.
\u201cThis 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.\u201d
The fund\u2019s monthly income of R3 billion from the fuel levy has been used to make 30\u201a000 monthly payments\u201a but it\u2019s not nearly enough\u201a said Watson\u201a who referred to the RAF as \u201cthe caring arm of government\u201d.
\u201cA balance of R8\u201a2 billion worth of payments to 5\u201a200 creditors remains queued for payment over and above all that is paid.\u201d
The attachment\u201a removal and sale of RAF assets was thus \u201can unfortunately common reality\u201d\u201a Watson said.
\u201cThis 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 and the cash management plan put in place two years ago endeavors to maintain regular payments to creditors.\u201d
This latest attachment had badly disrupted the Fund\u2019s bid to fulfil its mandate – \u201cto indemnify\u201a compensate and rehabilitate car crash victims\u201d – despite the ongoing lack of funds\u201a he said.
\u201cWe apologise for any inconvenience caused and every effort is being made to resolve the matter speedily in order for the RAF to resume payments.\u201d
\u2018The immediate payment halt\u201a continued cash constraints and the huge\u201a unfounded liability the Minister of Finance raised in the Medium Term Budget Speech are continued evidence that the RAF dispensation is expensive\u201a unaffordable and unsustainable\u201a\u201d Watson said.<\/p>\n

\n

Sentiment rank: -2.9<\/div>\n

\n<\/div>\n<\/div>\n