Key Takeaways
- The Road Accident Fund (RAF) has paid out over R7.3 billion to foreign nationals in the past five financial years.
- The highest individual payout to a foreign national was R16.7 million in the 2022-23 financial year.
- The Department of Transport is reviewing the RAF’s legislative framework, aiming to replace the current fault-based system with a no-fault benefit dispensation.
- The proposed Road Accident Benefit Scheme Bill is currently undergoing necessary processes before being introduced to cabinet for approval and public consultation.
- There are concerns about the financial sustainability of the RAF under the current system and the payments made to foreign nationals, including those who may be undocumented.
Introduction to the RAF Payouts
The Road Accident Fund (RAF) has been under scrutiny lately, with concerns surrounding the payments made to foreign nationals, particularly those who may be undocumented. In response to written parliamentary questions from ActionSA MP Alan Beesley, Transport Minister Barbara Creecy revealed that the RAF has paid out over R7.3 billion to foreign nationals across 24,520 claims in the past five financial years. This significant amount has raised eyebrows, with many questioning the financial sustainability of the fund under the current system.
Breakdown of RAF Payouts
A closer look at the figures reveals fluctuations in both the monetary value and the number of claims settled for foreign nationals between the 2020-21 and 2024-25 financial years. The 2022-23 financial year saw the highest total payout at R1.97 billion across 5,610 claims, while the 2021-22 period recorded the largest number of claims at 7,487, totaling R2.11 billion. The most recent figures for 2024-25 show a decline, with R546.55 million paid out across 1,817 claims. Notably, the highest individual claim paid to a foreign national reached R16.7 million in the 2022-23 financial year, followed by R12.65 million in 2020-21 and R8.59 million in 2023-24.
Limitations in Data
However, Creecy noted a limitation in the available data, stating that the Road Accident Fund claims database does not specify the nationality of individual claimants, but distinguishes between those who are South African citizens and those who are not. This limitation highlights the need for a more comprehensive and detailed database to accurately track and monitor RAF payouts. The lack of detailed data also raises concerns about the potential for abuse or exploitation of the system, particularly by undocumented foreigners.
Legislative Review
The disclosure of RAF payouts comes as the Department of Transport undertakes a comprehensive review of the fund’s legislative framework. The current system has been deemed unaffordable due to the process of proving fault in settling claims for damages. In response, the department intends to replace the existing system with a Road Accident Benefit Scheme that would introduce a no-fault benefit dispensation. The proposed Bill is currently undergoing necessary processes before being introduced to cabinet for approval and public consultation. The aim of the new system is to ensure the financial sustainability of the RAF and provide a more efficient and effective way of settling claims.
Political Pressure
The questions to the minister reflect growing political pressure over RAF payments to foreign nationals, particularly those who may be undocumented. MK party MP Thalente Kubheka had asked Creecy to introduce amending legislation to stop compensating foreigners, including undocumented individuals, from claiming against revenue collected from taxes. While Creecy’s response focused on the broader legislative review aimed at ensuring the fund’s financial sustainability, she did not provide a specific timeline for when the proposed Road Accident Benefit Scheme Bill would be tabled in parliament. The political pressure highlights the need for urgent action to address concerns surrounding RAF payouts and the financial sustainability of the fund.
Conclusion
In conclusion, the disclosure of RAF payouts to foreign nationals has raised concerns about the financial sustainability of the fund under the current system. The Department of Transport’s review of the legislative framework and proposed introduction of a no-fault benefit dispensation aim to address these concerns. However, the lack of detailed data and the potential for abuse or exploitation of the system highlight the need for a more comprehensive and effective approach to managing RAF payouts. As the proposed Bill undergoes necessary processes, it is essential to ensure that the new system prioritizes the financial sustainability of the RAF and provides a fair and efficient way of settling claims for all individuals, regardless of their nationality or documentation status.
