In a recent statement, RAF CEO Collins Letsoalo highlighted a significant financial hurdle facing the fund. Letsoalo explained that changing the accounting policy of the Road Accident Fund would classify it as an insurer, resulting in a substantial actuarial liability of R500 billion. This staggering amount would need to be provided by the government, placing a heavy burden on public finances.
The implications of this financial shift are far-reaching, with potential impacts on the fund’s ability to fulfill its mandate of compensating victims of road accidents. The need for government intervention to cover this liability underscores the critical role the RAF plays in providing financial support to those affected by road accidents.
As discussions continue about the future of the fund and how to address this financial challenge, it is clear that decisive action will be required to ensure the continued operation and effectiveness of the RAF. Stay tuned for updates on this developing story as stakeholders work towards a sustainable solution for the fund’s financial stability.