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AfriForum warns that it is completely nonsensical to propose a new funding mechanism for the Road Accident Fund (ROF) before ensuring that the fund is properly managed.
Maroela Media reported earlier that Barbara Creecy, the Minister of Transport, said her department was considering a new contribution scheme for the RAF. This scheme may involve an additional annual charge on the renewal of license discs.
AfriForum points out that the RAF is technically insolvent, in November last year it still had a backlog of 400,000 claims and in the meantime there is no indication that the backlog has been wiped out. The Standing Committee on Public Accounts (Skoor) is also still busy with an investigation into the POF’s management and recently decided to request the secretary of parliament to lay a criminal charge against Collins Letsoalo, the former chief executive of the fund.
Although the minister is correct that electric vehicles do not currently contribute to the RAF through the fuel levy, AfriForum says that this only represents a small loss of income. The organization argues that the real financial damage stems from years of poor governance and mismanagement.
According to Louis Boshoff, AfriForum spokesperson, it is strange that the minister points to electric vehicles as a cause of reduced income, but does not single out electric vehicles for the proposed new levy on license disc renewals.
“It would appear that this proposal will effectively make owners of fuel-powered vehicles pay twice. They already contribute through the fuel levy and may then have to pay extra when they renew their license discs. South Africans should not be expected to pay more as a result of ongoing failures in the management of the RAF.”
AfriForum undertakes to monitor developments and participate in any future consultations on the financing of the RAF.
“The government must first show that it can manage public funds efficiently and responsibly before motorists are asked to contribute more. It is time to stop pouring additional money into systems where resources continue to be lost through mismanagement and poor oversight.”