Foreign nationals milking RAF

ROAD Accident Fund (RAF) CEO Collins Letsoalo urges the government to act swiftly.

He called for the signing of an amendment bill designed to protect the fund from corrupt groups exploiting loopholes in the current legislation.

Letsoalo said this during a media briefing at the fund's headquarters in Centurion, Tshwane on Monday, 16 September, where it was indicated the bill was currently with the justice minister for processing.

Among other things, the bill seeks to relieve the fund from obligations ordinarily reserved for insurers, exempt it from having to compensate foreign nationals, legal or otherwise, and prevent it from settling claims in lump sums.

Letsoalo said he expected pushback from groupings he described as "privileged," such as big law firms, medical aid schemes, and dodgy but powerful NGOs.

The CEO further stated that the RAF has been steadily reducing legal costs by, among other measures, resolving cases speedily.

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"You must understand that lawyers don't make money by finishing cases on time. The longer a matter drags, the more money they make," said Letsoalo, adding that an attorney in Tshwane is known for telling prospective clients that he only takes clients who want to fight their case in court and not those amenable to settlements or mediation.

"There's been a movement, we are told, of lawyers moving to the Department of Health where they now seek to make money off medical negligence cases. We're not surprised. It's because of the measures we've been putting in place," said Letsoalo.

He further mentioned that a social benefit scheme in the form of medical aid claiming from another social benefit scheme is unheard of, and that's one area where they're battling it out with the likes of Discovery.

Letsoalo said even some judges insist that the RAF must continue to operate like an insurer, claiming it has always been like that.

"Now this judge does not base this conclusion that it must operate like an insurer on any law, but he insists that is how it's supposed to be. Why can't we be like Sassa? We want to be like Sassa, fill a form and then come to us. Why do you need to issue summons against your own state? It doesn't make sense," said Letsoalo.

He said the bill was currently facilitating public comments, which he said would most probably come from those benefiting from the current legal loopholes.

"We know where most of the comments will come from. They will come from powerful law firms, some NGOs - there's one called Victims of Accidents something. Go look at their founders; none of them have been a victim of a road accident, and they're so resourced. They have strong lobbies; the privileged have powerful lobbies, and of course, the medical aid schemes," said Letsoalo.

He said the bill is also aimed at foreigners who have found a way of milking the fund. The biggest payout on record is about R600 million paid to a Swiss national.