RAF running out of road
LEGAL BATTLE: LITTLE ROOM TO MANOEUVRE IN CONTEMPT OF COURT CASE BROUGHT BY DISCOVERY
The legal options available to the financially stressed Road Accident Fund (RAF) appear to be dwindling. This follows the latest developments in the contempt of court application launched by Discovery Health that was served on the RAF and its CEO, Collins Letsoalo, on 9 November last year.
Discovery Health launched the urgent application because of the alleged failure of the RAF to implement a previous order related to the payment of the past medical expenses of fund claimants.
The application is being opposed by the RAF and Letsoalo. They have argued the RAF should not be liable for past medical expenses where the injured person is a medical scheme member.
However, the RAF has been unsuccessful in convincing the courts to accept this argument in several high court judgments.
Discovery Health CEO Dr Ron Whelan said on Monday that the RAF has to date not resumed payments of valid claims to medical scheme members, despite the clear position of the courts declaring unlawful the RAF’s directive to halt payments.
Whelan said this position adopted by the RAF is believed to be in direct breach of the high court ruling, enforced by the Supreme Court of Appeal and the Constitutional Court.
This is a reference to a judgment handed down on 27 October, 2022, which declared unlawful the RAF directive issued on 12 August, 2022, and the RAF unsuccessfully applying to both the Supreme Court of Appeal and Constitutional Court for leave to appeal this judgment.
Whelan said given the RAF’s “concerning conduct”, Discovery Health was left with no alternative but to resort to seeking an order declaring the RAF and its CEO in contempt of court. He confirmed the application was partly heard in the High Court in Pretoria earlier this month.
Whelan said that following opening submissions made by Discovery Health’s counsel and the reply by RAF counsel, the presiding judge consulted the deputy judge president, who advised that a decision was made to postpone the hearing for it rather to be heard in front of a full bench.
He said Discovery Health is currently awaiting a date.
“It is important to note this is not the first contempt of court application against the RAF CEO [Letsoalo] in recent months,” said Whelan. “The CEO of the RAF was held in contempt of court on another matter (Mazibuko v the RAF) on 12 October 2023.
This is a reference to an order related to a claim submitted to the RAF by accident victim Nelson Cebiso Mazibuko from Kabokweni in the Nsikazi district in Mpumalanga.