Road Accident Fund: Executives Shares Giant Bonuses Despite R180b Outstanding Claims


South Africa’s official opposition party says it’s in possession of documents which have revealed that Road Accident Fund (RAF) Executives initiated plans to share giant bonuses among themselves despite an outstanding R180 billion in RAF claims.

Also, the documents showed that RAF wants to hand its staff bonuses above inflation.

“…RAF has proposed to its Board an astronomical 30% bonus for its Executives. Additionally, it is proposed that all staff at the RAF will receive bonuses far above inflation,” DA related.

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The party wailed that this revelation is uncool because the Fund is bankrupt and currently unable to pay road accident victims.

“While thousands of road accident victims are being denied their claim monies, executives are about to receive astronomical bonuses.

These documents clearly show that bonuses had not been originally budgeted for in light of the R180 billion in outstanding RAF claims which are currently on the books,” DA lamented.

With that, the party disclosed that it will write to Joe Maswanganyi, the Minister of Transport asking that he investigate the matter.

Specifically, DA wants the Minister to investigate “how bonuses so much higher than the inflation rate can be justified within the current economic climate and…financial challenges facing the entity.

“The responsibility should be firmly placed with the Executives. It is ludicrous that they are proposing a 30% bonus for themselves,” DA asserted.

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Adding that the bonuses are justified by claims that the Minister and the Transport Portfolio Committee approved predetermined objectives, DA said:

“This is simply untrue. At no stage did the Committee make such an approval. The Committee does not have the power to do so.”

Thereafter, the party charged that it will not allow Road Accident Fund to serve as perpetual personal piggy-banks for a select connected few when many South Africans are waiting to be paid.