RAF seeking legal advice to unfreeze its bank account
THE Road Accident Fund (RAF) is seeking legal advice in an attempt to unfreeze its bank account after it was attached by the sheriff of the court on Friday due to a R11-million pay-out dispute.
This comes as nine legal practitioners with 33 separate claims took the RAF to court, demanding payment.
“We are exploring our options in respect of the sheriff’s actions and the process followed, the banks procedures and the particular claimants in question where it is found that most of the listed payments were made in 2016,” said chief executive Dr Eugene Watson through his spokesperson.
Durban-based RAF attorney Michael Friedman accused the attorney firms which had attached the RAF’s bank account of “not playing ball”.
“What they’ve done is jumped the queue instead of waiting patiently in line with the rest of us,” he said.
“We don’t like it but we have to work with the Fund, even though this mess is not of our making. If all of us (RAF attorney firms) did what those few Gauteng firms have done, there would be chaos,” Friedman said.
That the law firms in question had succeeded in attaching the fund’s bank account to preserve the funds in order to ensure payment for their clients, was “very bad” for the majority of claimants, Friedman said.
The RAF has been battling financial problems for decades and Friedman said it was time for National Treasury to step in “to give the RAF a lump sum payment”.
The fund relies on fuel levies to make ends meet and makes approximately 1 500 daily payments.
“Our primary problems are cash constraints due to productivity outstripping available funding and the reality is that the RAF dispensation excludes many.
“It fails to treat eligible claimants equally and has been insolvent since 1981. It is expensive and unsustainable and change is necessary.”
He noted that in the 2015/16 financial year, the RAF received over 15 000 warrants of execution and by the third quarter of 2016-17 the fund had already received over 10 000.
Since Friday, claimants have been fuming, posting angry messages on the fund’s Facebook page.
Lara Berman posted: “No warning even though they knew about it days ago. No backup plan for people who are in pain and suffering. No ethical consideration by the attorneys who attached the accounts, that they are literally hurting fragile vulnerable people. Shame on them for hurting all the victims and their families just to get their own client’s issues sorted out first”.
Anthony Steyn vented: “Great idea for the RAF as most of us are busy with claims. Close your f ***** doors and put a fish and chips sign outside you bustards (bastards). You tell us there is a screw up but nooooobody can even give us [date] on when your k** is going to get sorted”.