The RAF may be involved in another court case with a group of attorneys over the non-payment of claims, saying an additional levy would not suffice if the fund was being mismanaged.

The RAF may be involved in another court case with a group of attorneys over the non-payment of claims, saying an additional levy would not suffice if the fund was being mismanaged.

Attorney Douw van der Merwe said the fund owed him more that one million rand and if things did not improve, the next step would be to take the RAF to court.

“The RAF is committing insurance fraud. The clients pay a fuel levy and are entitled to be paid out if injured in an accident,” Van der Merwe said.

He blamed the RAF’s financial crisis on mismanagement and questioned how the proposed additional levy would assist the fund, if the RAF was being mismanaged.

Earlier this week, a separate group demanded the fuel price be pushed up to remedy the fund’s financial situation. The Law Society of South Africa (LSSA) proposed that government increase the fuel price by 25 cents a litre to make more money available to the RAF. Since the RAF had depleted its reserves and was unable to meet its obligations, the LSSA said talks about the proposed increase should be held as a matter of urgency.

Monique Woods, president of the SA Association of Personal Injury Lawyers, said in a letter to transport minister Jeff Radebe that the RAF had wasted millions of rands.

Woods said: “Fraud and corruption on a breathtaking scale have taken place and continue to occur. About R39 million was wasted on a claims process system which failed to work. An internal audit report found that R93 million was dissipated on ‘fruitless and wasteful’ expenditure.”

Van der Merwe argued that, looking at the fund’s expenditure, 62 per cent of its monthly expenditure was spent on its own costs while only 38 per cent went towards claims.

Original article from Car