Management at the Road Accident Fund have called on the government to move with speed in signing into law an amendment bill aimed at saving the fund from unscrupulous groupings whom it says are exploiting loopholes in current legislation.
The RAF executives briefed the media at the fund’s headquarters in Centurion where it was indicted the bill was currently with the justice minister for processing.
Amongst others the bill seeks to relieve the fund from obligations ordinarily reserved for insurers, exempt it from having to compensate foreign nationals, legal or otherwise as well as having to settle claims in lump-some.
Letsoalo said he expected a pushback from groupings he described as “previledged” such as big law firms, medical aid schemes and dodgy but powerful NGOs.
The CEO said the RAF has been steadily reducing legal costs by among others resolving cases speedily and where possible by agreement as opposed court a move he says saved just under R25 billion in four years but rejected by the legal fraternity.
“You must understand that lawyers don’t make money by finishing cases on time. The longer a matter drags the more money they make, said Letsoalo likening them to an attorney in Pretoria whom he said is known for telling prospective clients that he only took clients who wanted to fight their case in court and definitively not those amenable to mediation to settlements or mediation.
Letsoalo current legislation is so vague that anyone can lodge a frivolous claim and succeed and warned that if nothing is done, the entire government may find itself overwhelmed by lawsuits.
“There’s been a movement we are told, of lawyers moving to the department of health where they now seeking to make money off medical negligence cases. We are not surprised. It’s because of the measures that we have been putting in place,” said Letsoalo.
“A social benefit scheme in the form of medical aid claiming from another social benefit scheme, its unheard of and that’s one area where we battling it out with the likes of discovery,” said Letsoalo of efforts to stop medical aid schemes from taking the RAF monies from their clients.
Letsoalo even some judges insist the RAF must continue to operate like an insurer “claiming it has always been like that”.
“Now this judge does not base this conclusion that it must operate like an insurer on any law but he insists that is how its supposed to be. Why can’t we be like SASSA, we want to be like SASSA, fill a form and then come to us. Why do you need to issue summons against your own state, it doesn’t make sense. Even with some of the biggest law firms that would claim intellectual property what what, at the centre of their business is the RAF,” said Letsoalo also indicating the fund would rather there was an independent adjudicator instead.
He said the bill was currently for facilitating public comments which he said would most probably come from those benefiting from the current legal loopholes.
“We know where most of the comments will come from. They will come from powerful law firms, some NGOs, there’s one called victims of accidents what what, go look at their founders, none of them have a victim of a road accident and they are so resourced, they have strong lobbies, the previledged have powerful lobbies and of course the medical aid schemes,” said Letsoalo.
He said bill is also aimed at foreigners whom he said have found a way of milking the fund. The biggest payout on record is R 600 million paid to a Swiss national.