New RAF legislation will not withstand legal scrutiny – Outa

The draft Road Accident Fund (RAF) Amendment Bill, published in September for public comment will not withstand legal scrutiny, says Organisation Undoing Tax Abuse (Outa).

The bill has already caused massive public backlash and outrage.

Outa believes the draft bill will not do much to address the many issues at the RAF that include claims backlogs, fraud and corruption. Outa submitted its comments on the bill to the department of transport.

“Our legal team studied the proposed amendment bill and it is clear that this bill amounts to an unconstitutional, unreasonable and irrational cost containment measure that will have a significant impact on all South Africans,” Adv. Stefanie Fick, executive director of Outa’s accountability division, says.

She says Outa, though the RAF receives approximately R48 billion per year in funding from the fuel levy, the bill proposes to change from the payment of compensation as a statutory national insurer to the provision of a social benefit or welfare.

“While the envisaged ‘social benefit’ will be far less than the losses actually suffered in a motor vehicle accident, the fuel levy income the RAF receives will continue to remain in place and grow, as the levy and/or road traffic volumes increase,” Fick says.

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Accident victims will no longer be able to claim for injuries

According to the bill rights of all road accident victims to claim compensation for injuries from a motor vehicle accident, will now not only be limited but removed and replaced with a package of ‘social benefits’, which is grossly inadequate, or completely removed for certain categories of persons or claims, she warns.

“Outa thinks instead of dealing with the root causes of the problem, road safety, the RAF’s grossly inefficient administrative systems, poor processes and a dearth of leadership and expertise, the proposed amendment bill seeks to obfuscate the RAF’s responsibilities and reduce its claims through legislative measures.”

Fick says the proposed amendments will not address the claim backlogs, fraud, corruption, political interference and a lack of accountability. What it needs are efficient systems and strong leadership.

“Our opinion is that the RAF should first engage with civil society, the private sector and other stakeholders to find meaningful solutions for the existing problems.

Outa is not aware of any independent and objective research or assessments conducted by the department of transport or the RAF that definitively show implementation of the proposed amendments will result in improved financial sustainability and operational efficiency.”