Road Accident Fund

Presentation of the 2016/17 Annual Report

PCOT

Structure

• The Business

• 2016/17 Outcomes

• Challenges

• The Year at a Glance

• Conclusion

PRESENTATION

Mandate

• Road Accident Fund Act, 1996 (Act No. 56 of 1996) & RAF Amendment Act, 2005 (Act No. 19 of 2005)

› “Payment of compensation in accordance with this Act for loss or damage wrongfully caused by the driving of a motor vehicle”

› The Fund provides compulsory cover to all users of South African roads against injuries sustained or death arising from accidents involving motor vehicles within the borders of South Africa

• National public entity (Schedule 3A of the PFMA)

• Constitutional Court rulings and legal precedents have shaped the mandate

• The Fund is called on to:

› Provide a social security safety net

› Indemnify, rehabilitate and compensate the injured

› Promote the safe use of all South African roads

The Business

Vision, Mission and Values

The Business

Strategic Outcomes

The Business

Strategic Outcomes (continued)

The Business

Business Model

The Business

Operations

The Business

Origination

Determination

Litigation

Direct Claims

Finalisation

Post -Finalisation

Human Capital

Risk Management

Forensics

Stakeholder Management

Project Management

Monitoring & Assurance

Marketing

Highlights

2016/17 Outcomes

Highlights (continued)

2016/17 Outcomes

Indicators

2016/17 Outcomes

Indicators (continued)

2016/17 Outcomes

Indicators (continued)

2016/17 Outcomes

Indicators (continued)

2016/17 Outcomes

Indicators (continued)

2016/17 Outcomes

Transformation

2016/17 Outcomes

Pillar 2016/2017 2011/2012

Strategic Objectives Achieved 90% 53%

Staff Count 2,676 1,844

Open Claims 213,877 264,579

Claims settled and paid 209,561 170,043

Claim Expenditure R31.9bn

(RNYP R8.5bn)

R12.5bn

(RNYP R0.17bn)

Legal Costs as % of Claims 16% 29%

Reopened Claims 4,616 41,480

National Footprint – Offices

•No. of Offices

•No. of Hospitals

•No. of Consultations

•12

•100

• 158,127

•5

•52

•20,039

Average value of a claim 117,059 54,208

Direct Claims Originated 38.6% 15%

Transformation (continued)

2016/17 Outcomes

Pillar 2016/2017 2011/2012

•ROTR Events

•No. of Claimants (All Events)

•Value settled during ROTR Events

•10

•54,148

•R100m

•1

•N/A

•R463,000

Writs 15,720 11,656

Call Centre

•Agents

•Calls Received

•Calls Answered

•% Abandoned calls

•27

•385,073

•376,215

•2.30%

•5

•N/A

•N/A

•N/A

Fraud

•Arrests

•Convictions

•Repudiations

•88

•68

•R388m

•502

•N/A

•N/A

APP Performance

2016/17 Outcomes

Legend Target ACTUAL PERCENTAGE

2016/17 2011/12 2016/17 2011/12

Target achieved

or exceeded

27 8 90% 53%

Target partially

achieved

0 3 0% 20%

Target not

achieved

3 4 10% 27%

Target not

scheduled for

quarter under

review

0 0 0% 0%

Total 30 15 100% 100%

Annual Audit by Auditor- General

• Audit is Clean!

• RAF’s financial statements present fairly, in all material respects, the financial position of

the Road Accident Fund as at 31 March 2017.

• Free from material misstatements.

• Emphasis of matter on the net deficit retained, as in prior years, as our current liabilities

exceeded total assets by R179,992,925,000.

• The AG did not identify any findings on the usefulness and reliability of the reported

performance information.

• Management letter confirms a net improvement in internal controls.

• 18 issues raised in the management letter.

2016/17 Outcome

Statement of Financial Position

2016/17 Outcomes

Statement of Financial Performance

2016/17 Outcomes

Cash Holdings

2016/17 Outcomes

Claims Liabilities

2016/17 Outcomes

2016/17 Outcomes

Irregular Expenditure

2016/17 Outcomes

Irregular Expenditure (continued)

Fruitless & Wasteful Expenditure

2016/17 Outcomes

Fruitless & Wasteful Expenditure (continued)

2016/17 Outcomes

Significant issues

• Seriously insufficient cash resources – total revenue remained stable when compared to

the previous financial year

• Writs, legal costs, interest payments, converted direct claims, and disrupted operations

• Sharp growth in the net deficit

• Direct indication of the unsustainability of the current dispensation and a clear marker of the

extent to which the business will need additional cash resources as claim liabilities

materialise

• Aggressive opposition from particular stakeholders

• Anti-RABS and anti-Direct claims sentiments expressed extensively by those who benefit in

the current and unsustainable dispensation

Challenges

The Year at a Glance

2016/17 was a tough but successful year!

• Great expectation still rests on our shoulders

• Claimants, suppliers, stakeholders and Government

• Significant challenges arose and each was managed in line with existing policies and

plans

• Residual challenges persist and so too does the impact of some challenges which were

resolved

• Despite the challenges the RAF succeeded in fulfilling 90% of the approved APP and

winning independent awards, whilst having 2,676 members of #TeamRAFzin delivering

services on a daily basis, interacting with 54,000 people at its community outreach

campaigns and settling claims to the value of R97 million in field.

• It is important that the RAF remains focused on fulfilling its strategy and that urgent

stakeholder support is secured on additional funding for the business and the eventual

implementation of RABS.

Conclusion

2 Eco Glades Office Park

420 Witch Hazel Avenue

Centurion

0860 23 55 23

www.raf.co.za

Thank You