South Africa's Road Accident Fund will have to fix its finances without a bailout. Transport Minister Barbara Creecy has ruled out additional government funding for the fund, EWN reported in Tuesday's national news briefs.
Creecy also rejected the fund's proposal to increase the fuel levy to R3 per litre, saying motorists are already under financial pressure. The priority, she said, is to address the fund's management and financial challenges directly.
A new chief executive has been appointed at the fund, and the process of appointing a permanent board is under way. The fund has faced sustained concern over its ability to meet its claims obligations to road-accident victims.
The minister said legislative changes are also needed to establish a clear schedule of benefits, so claimants and the fund alike know what is covered. Until then, the fund's finances remain one of the South African government's most watched fiscal pressure points.
