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RAF resolves to stem fraud, corruption

25th June 2004

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The embattled Road Accident Fund yesterday announced it had taken "immediate" measures to stabilise the fund which is marred by fraud and corruption.

RAF acting chairman Saths Cooper said: "We are not underestimating the extent of the problem and our primary aim at this stage is to stabilise the current situation in order to return the RAF to a sustainable financial position.

"A strategic recovery plan has been initiated that will remedy the current situation, without requesting government for a further increase of the current fuel levy."

A number of government officials, lawyers, doctors and RAF employees have been arrested for defrauding the fund of thousands of rands.

Early in June, RAF chairman Willie Huma and chief executive Humphrey Kgomongwe were suspended amid allegations of maladministration and improper financial management of the fund.

Cooper said yesterday that every day more than 670 claims were lodged against the RAF, and about 650 claims were settled.

"We are not only faced with challenges to overcome the financial situation of the RAF, but also to combat the fraud and corruption that is eating away at the heart of the fund."

Some of the measures taken by both the government and the RAF board to reverse the situation included: introducing a new and effective payment system; installing a new verification system to authenticate claims; investigating a claims differentiation system to separate out the bulk of claims, which clutter the magistrate's courts; evaluating existing service providers/consultants to reduce reliance on them; and conducting a probe into allegations against Huma and Kgomongwe.

Cooper said, "These interventions will create the conditions to stabilise the ship.

"The system of payment and settlement of claims and our ability to uproot corruption and fraud are both critical to the success of our efforts."

– Sapa.

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