South African WASTAGE: RAF spends millions to pay employees who sit at home
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[RAF = Road Accident Fund. Jan]
26 September 2024
The DA will urgently engage with Minister of Transport, Barbara Creecy at the next portfolio committee meeting to address the alarming situation at the RAF, where millions are being spent on employees who have been suspended and are sitting at home.
We will seek more information about the current capacity to handle claims, assess the impact these staff suspensions have had on recent operations, and understand what immediate steps will be taken to finalise these cases and prevent further costs.
Moreover, we will continue pushing for a sustainable and practical framework of reforms to the RAF Act, ensuring that both financial liabilities and operational inefficiencies are addressed in the best interests of all South African citizens.
Despite efforts to create an impression of stability, the Road Accident Fund (RAF) continues to grapple with severe operational and financial issues. Time is running out to meet any of the targets outlined in its 2020-2025 Strategic Plan, which aimed to stabilise the fund. During this period, over R84 million was paid to suspended staff sitting at home—money that could have been used to settle around 500 additional claims, based on the average claim value of R163 000 as per RAF Financial Statements.
In the last 18 months, 32 employees have been suspended, with salaries amounting to approximately R20 million. Even more concerning is that a group of employees has been on suspension for over four years, collecting full pay at an estimated cost exceeding R50 million.
This situation was revealed in a report requested by the transport portfolio committee and provided by Transport Minister Creecy. Notably, the report excludes legal costs, litigation, and settlements for previous suspensions.
The report sheds little light on why these matters remain unresolved, with most cases being described as either "Under review as per whistleblower’s investigation report" or "disciplinary hearings in progress." If this trend continues, an additional R3.6 million per month will be wasted, assuming no new suspensions are added to the current list of 46 suspended staff.
Given that many of these suspended employees are involved in claims processing, the complaints from road crash victims and stakeholder creditors about delayed payments are entirely expected.
Issued by Chris Hunsinger, DA Spokesperson on Transport, 26 September 2024
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