National
Road Accident Fund bankrupt─── 11:34 Thu, 13 Sep 2012
Mariné Jacobs
The Road Accident Fund is technically bankrupt, according to its latest report tabled in Parliament.
Auditor-general Terence Nombembe says the fund’s financial position casts a doubt on its ability to operate.
According to the report, the RAF incurred a net loss of more than R16 million at the end of March this year.
This means that the fund’s total liabilities exceed its total assets by more than R46 million.
Eugene Watson, the fund's CEO, said the RAF has been actuarially insolvent for over three decades, yet it continues to honour its obligation to claimants.
Watson says they are attempting to identify sustainable funding mechanisms.
The Road Accident Fund is technically bankrupt, according to its latest report tabled in Parliament.
Auditor-general Terence Nombembe says the fund’s financial position casts a doubt on its ability to operate.
According to the report, the RAF incurred a net loss of more than R16 million at the end of March this year.
This means that the fund’s total liabilities exceed its total assets by more than R46 million.
Eugene Watson, the fund's CEO, said the RAF has been actuarially insolvent for over three decades, yet it continues to honour its obligation to claimants.
Watson says they are attempting to identify sustainable funding mechanisms.
