Johannesburg – Road Accident Fund (RAF) chief executive Eugene Watson confirmed that the institution had been insolvent since 1981 and last week had an unfunded liability of R145 billion, which was equivalent to 3.5 percent of South Africas gross domestic product.
Watson, who was appointed in 2012, told Business Report in an interview that the fund had suffered from performance, management and governance issues over the last two decades and they fully recognised it needed a serious amount of work to make the institution better.
Something has to be done. Whether you are a fan of this (RAF) or something new, we have to do something because in five to eight years we will have to pay the R145bn, Watson said.
According to the funds latest an…
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