RAF records a R1.6 billion deficit in the 2023/24 financial

The Road Accident Fund (RAF) has recorded a deficit of R1.6 billion in the financial year 2023/24. The fund says this is due to the three consecutive years of no fuel levy increases.

RAF CEO, Collins Letsoalo says the executive team inherited a fund with a multitude of challenges. But, the fund is still functional as it continues to turn around the organisation through its new model.

The latest deficit was markedly lower than the R8.4 billion deficit recorded in the previous year.

The fund partly attributed the deficit to lack of fuel levy increases for the past three years. The fund also says while it registered yet another loss, it’s evident that it’s now out of the woods. However, significant challenges remain.

“We had a deficit of R1.5 billion coming from R8.4 billion the previous year. That must show you what we have done. So, there is a marked improvement in that. We would not like to show a surplus. We always want to be somewhere closer to zero because that’s where the social benefit fund was. We don’t want to make a loss,” says Letsoalo.

The fund says it is also working on reducing its backlog of claims. In the same period, the fund says its backlog increased by 1. 2% from the previous year.

“Claims registered 79 377 and claims finalised 63 015. And that must tell you the difference in what is called the backlog. Because if you register more, you finalize less, you are going to have a backlog,” Letsoalo added.

The Road Accident Fund urges claimants to report matters such as attorneys taking advantage of claimants such as underpaying them.

Video: RAF media briefing