Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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The Road Accident Fund did not get a cent in this year’s budget, the first time that has happened. It did not even get a mention and one can only assume that that is because the government is intent on implementing RABS as soon as possible. I understand that government is probably fed-up with the non-stop contributions that have to be made to the Road Accident Fund, but if the management was not settling cases at double the rate of previous years when they don’t need to be, the situation would not have arisen. The problem is poor management of cash flow in my opinion.
What everyone forgets is that every single year the awards that are made are bigger, because salaries typically go up with inflation so loss of income goes up and general damages awards go up with inflation so they too are larger. If you do not give the entity at least an inflationary-linked increase each year, you will run into bigger financial issues, unless the management slows down the settling of cases. An inflationary-linked increase this year would be 10,5c and so, by not giving any increase at all, the payment problems can only get worse.
Posted by Michael de Broglio on Thursday 10-Mar-16
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Comments
Helen said:
on Wednesday 23-Mar-16 04:59 PM
The question is how all the Funds ar getting spend at RAF? RAF are so behind with the outstanding payments and what will happen now?
Jolene said:
on Wednesday 23-Mar-16 10:23 AM
This unfortunate decision will definitely have an impact on everyone in this industry.
Kaylee said:
on Wednesday 23-Mar-16 09:36 AM
I read some of the comments on this blog and wonder if people actually see the bigger picture, "disappointing" yes but what about the ripple effect this has on anyone in the RAF industry. It's a reality check
Melissa said:
on Wednesday 23-Mar-16 09:17 AM
Very disappointing news for everyone
Marisa said:
on Wednesday 23-Mar-16 08:40 AM
it is sad as people are already struggling to get payments from them, now it would take longer.
Sally said:
on Monday 14-Mar-16 10:23 AM
A very uncertain future for many in this field
Sinead said:
on Friday 11-Mar-16 03:15 PM
I was quite shocked when I heard about this... Payments are already taking so long to come in - this is just going to delay the payments even more...
Daniella said:
on Friday 11-Mar-16 08:29 AM
Its quite surprising actually, I really thought that the RAF would have gotten something especially because they really need the extra boost.
Zanell said:
on Thursday 10-Mar-16 04:31 PM
I seriously think the reason why the Fund started experiencing a cash flow problem was because of corruption on the Funds side. Maybe if they attended to things in advance they wouldn't have to pay for so much costs. I get that they are implementing RABS to "protect" the clients but will they actually give clients what they deserve if we always have to fight for more?
Brenda Du Toit said:
on Thursday 10-Mar-16 04:12 PM
This is very disappointing new for us
Prishani said:
on Thursday 10-Mar-16 04:10 PM
Considering the cash flow problems that the RAF are currently experiencing, I am sure most people in the industry expected there to be some sort of increase in the funds being awarded to the RAF. Hopefully the fund is now working on different ways to solve their cash flow crisis.
Natasha said:
on Thursday 10-Mar-16 02:11 PM
Very disappointing...Its not like we already struggle to get payments from them... Now we are going to wait even longer
Cornelie said:
on Thursday 10-Mar-16 02:02 PM
Not good news at all for the clients who was injured and await payment from the Fund.
Sandra said:
on Thursday 10-Mar-16 11:38 AM
Very disappointing to say the least
Alexis said:
on Thursday 10-Mar-16 11:11 AM
Logic - simple logic. Though with the country the way it is, i do not think that word exists. Greed exists, corruption exists and the people suffer. I saw something on FB where the President of a certain country (cannot remember the name), gives majority of his salary away and will sit at a hospital to wait his turn to be treated - I do not know how true this is, as it is FB, but that is a person who cares and does what he can to help. Again, it is all logical, but ja
Michelle said:
on Thursday 10-Mar-16 11:07 AM
Im not even surprised.
Angelique Jurgens said:
on Thursday 10-Mar-16 11:01 AM
David's comment is on point. The RAF need to hire more experienced people rather than just the unemployed. The salaries might have to be a little higher but more results and quicker will save their money. This is definitely not going to give any relief to the payment situation, hopefully next year some extra funds will be allocated. However, by then the situation will be far worse than it is now.
Angelique P said:
on Thursday 10-Mar-16 10:30 AM
It's been proven over and over again. The government that runs companies don't succeed. They need to get new management.
Nicky said:
on Thursday 10-Mar-16 10:26 AM
I agree with you and David . There always seems to be some cash flow problem where the government is involved-if the RAF and other government institutions are properly run and managed from the start there would be no need for bail-outs;law changesetc, and RABS would not need to be implemented.
Without an increase from the government the dire situation will probably get worse-if the RAF have been struggling the past year when they did receive an increase how much worse will it be this financial year with no increase?.
patrick said:
on Thursday 10-Mar-16 10:18 AM
over the years that i have been doing the work,the Fund has always had problems but it has been as slow as it has become since New Ceo. , the problem lies with him changing the modus operandi of the fund in the name of getting it right. i suspect the new Ceo and his new ways of doing things is the main course of the current problems.
Chanika said:
on Thursday 10-Mar-16 10:12 AM
I definitely agree with David and Sarah that new management and new employees should be hired, otherwise things will not ever improve.
Liesl said:
on Thursday 10-Mar-16 10:08 AM
Very concerning
Johann said:
on Thursday 10-Mar-16 10:05 AM
Government was under pressure following their overspending which was compounded by their promises to University students and now chose to neglect the injured mva victims.
Melissa P said:
on Thursday 10-Mar-16 10:04 AM
Very disappointing news for us who are in the RAF industry and for our clients. Sad to think and very unfair.
latoya said:
on Thursday 10-Mar-16 10:03 AM
Dissapointing i must say:(
Clare said:
on Thursday 10-Mar-16 09:45 AM
It is so upsetting to read this because its so unfair and so disappointing this Country just doesn't seem like its going to get its head over the water we keep sinking and sinking.
Sarah said:
on Thursday 10-Mar-16 09:44 AM
I agree with David. New management and new employees should be hired.
Thabitha said:
on Thursday 10-Mar-16 09:43 AM
It was disappointing news since everyone is aware of RAF's problem
Melissa said:
on Thursday 10-Mar-16 09:43 AM
Disappointing news and it's just going to get worse.
david said:
on Thursday 10-Mar-16 09:42 AM
standard ANC stuff. employ the unemployable, and allow them to fun the institution into the ground. can you say SAA, TELKOM, ESKOM, SABC, the Post Office, the list is endless.
once upon a time, in its 1st incarnation, the RAF was run by private insurance companies, who, after paying claimants out, MADE A PROFIT!!! and now, due to incompetent management they want to change the law - take more from your citizens, and give even less back. but the real genius is keeping the incompetent employees, who caused the mess in the 1st place...
Daria said:
on Thursday 10-Mar-16 09:38 AM
Very disappointing news to hear this.
Jessica Apfel said:
on Thursday 10-Mar-16 09:37 AM
Perhaps public funds should not be squandered at the rate that it is, however I do share the sentiments of my colleges - uncertainty
Nikita said:
on Thursday 10-Mar-16 09:33 AM
And here we all thought Mr Gordon had it all under control. A very uncertain future for many in this field
Charlotte Harding said:
on Thursday 10-Mar-16 09:30 AM
Government should have stepped in much sooner. it certainly looks like poor management of funds at the RAF. But, rather late than never! Hope the situation will be rectified as soon as possible.
Bianca said:
on Thursday 10-Mar-16 09:30 AM
For those of us in the RAF industry, this is certainly a disappointment. I was hoping for an increase to bring some much needed relief to the bad payment situation. Every extra cent would have helped but alas.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
