Road Accident Fund Posts R3.2bn Surplus For 2020/2021 Financial Year – Mbalula

SOUTH Africa’s government said the liability of the debt-stricken Road Accident Fund, which compensates vehicle-accident victims, has been reduced by more than 90% as a result of an accounting change.

The RAF adopted a new accounting treatment for social benefits in the place of the insurance contract approach previously used, Transport Minister Fikile Mbalula said in an emailed statement.

This resulted in a decrease of the fund’s reported liability by 305 billion rand ($22.6 billion), bringing the RAF liability to 28 billion rand and the net liability position to 13.5 billion rand, he said.

Prior to the change the fund’s debts were the government’s biggest contingent liability after those of state power utility Eskom Holdings SOC Ltd., Mbalula said.