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The Democratic Alliance (DA) is concerned that recently released details regarding the RAF’s indebtedness are only the tip of the iceberg. The fund has technically been insolvent for many years now and despite several interventions (R2.5 billion in additional appropriations; a cap on claims) the fund is still battling with a backlog of over 300 000 claims amounting to over R42 billion.

The DA proposes that the RAF drastically cut its staff and reduce its executive pay packages – these executives have clearly failed and do not deserve such excessive salaries. The fund should also shift its focus away from litigation and towards administration. There is an enormous stock of legal precedent that can be utilised to settle unresolved cases. Too many legal cases are opened only to be settled out of court at a later time. This represents wasteful and inefficient behaviour on the part of the RAF that should be stopped immediately.

The Constitutional Court recently ruled to limit the claims of road accident victims to R160 000. This represents a small drop in an ocean of required savings. The reality is that the RAF will have to alter its operations significantly in order to become financially viable again. The enormous backlog of existing claims continues to threaten the fund’s viability in the long run.

The RAF owes the motoring public an explanation and a realistic turnaround strategy. More money is not the solution. The RAF has in recent years become involved in far too many court cases – it has in effect evolved into a litigating body, with 48% of the funds spent on resolving claims being absorbed by legal costs. The RAF was intended to serve as an administrative body and it should shift its focus back to that role. Furthermore, the RAF is notorious for paying excessive salaries to its executives, senior staff and legal teams. In a recent DA parliamentary question, it was revealed that the CEO’s monthly salary without bonuses amounts to R358 000.

Only by implementing significant organisational changes can the RAF become a viable entity again. More money is not the solution.