Africa-Press – South-Africa. The parliamentary inquiry into maladministration at the Road Accident Fund (RAF) has heard testimony that the reduction of claims officers and the scrapping of a panel of attorneys over the past five years are directly responsible for the massive claims backlog that has resulted in the Fund being repeatedly taken to court.
Two former finance managers also testified that this situation contributed to the start of grossly inflated settlements, some reaching up to 70% for a single claim.
The Standing Committee on Public Accounts (SCOPA) is probing the impact of unsettled claims on the Fund’s contingent liabilities.
Former RAF General Finance Manager Victor Songelwa and Senior Actuarial Manager Itayi Charakupa testified in tandem.
Charakupa explained to the committee the drastic reduction in finalising claims, which plummeted from 1,500 per week in 2020 to just over 500 in 2024. He attributed this decline directly to the slashing of staff.
“During the 2021 and 2022 financial years, more than 200 claim officers were suspended with the intention to dismiss them. Most of them were not replaced.”
Charakupa added that the termination of a panel of about 500 attorneys from 100 law firms, who helped to settle claims, exacerbated the situation.
He noted that the State Attorney’s office has been unable to cope with the resulting volume. “That led to inflated claim settlements and default judgments.”
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