The Road Accident Fund (RAF) has recorded a deficit of R1.6 billion in the financial year 2023/24. The fund says this is due to the three consecutive years of no fuel levy increases.
RAF CEO, Collins Letsoalo says the executive team inherited a fund with a multitude of challenges. But, the fund is still functional as it continues to turn around the organisation through its new model.
The latest deficit was markedly lower than the R8.4 billion deficit recorded in the previous year.
The fund partly attributed the deficit to lack of fuel levy increases for the past three years. The fund also says while it registered yet another loss, its evident that its now out of the woods. However, significant challenges remain.
"We had a deficit of R1.5 billion coming from R8.4 billion the previous year. That must show you what we have done. So, there is a marked improvement in that. We would not like to show a surplus. We always want to be somewhere closer to zero because thats where the social benefit fund was. We dont want to make a loss," says Letsoalo.
