RAF resumes payment of outstanding claims

The Road Accident Fund (RAF) has announced that it has resumed the payments of hundreds of outstanding claims, starting with those older than 180 days.

The fund estimates the total value of claims in this category to be more than R20 billion and said over the past two weeks it’s already paid out more than R3 billion of these.

The announcement follows last month's appointment of a new board for the beleaguered entity, and as Parliament gears up for the start of an inquiry next month into allegations of financial management at the fund.

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The RAF's new board says it's done a comprehensive review of claims older than 180 days, and it's giving priority to settling them.

It expects to pay out more than R4 billion in claims every month as it seeks to reduce the number of claims waiting to be processed.

The RAF says it's also put controls in place to ensure supporting documentation is reviewed promptly to avoid delays in making payments.

The interim board under the leadership of a former treasury official, Kenneth Brown, is also pledging to make public bi-monthly reports detailing the progress in payments.

"The board acknowledges there will be a need for direct engagement for possible disputes and clarity on some claims, especially as it relates to non-compliant ones," read a statement from the board.

Acknowledging the numerous claims-related complaints it has received ahead of its inquiry into financial mismanagement at the RAF, Parliament's Standing Committee on Public Accounts said last week these would not be considered, since they fall outside the scope of its probe.