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Transport Department asks for extra funds

The Transport Department has asked for additional funding for a number of the entities that it is in charge of.  Those include the Road Accident Fund – for whom they have asked for R17,2 billion.  I am not sure if that full amount will be given, but the Road Accident Fund is not being well-run now, and the cash flow situation there is obviously, as we all know, not going well – to put it mildly. 

Apparently, the head of the department, Alec Moemi, said they were negotiating with the National Treasury not just for the Road Accident Fund but also for ACSA, SACCA and SANRAL.  The Road Accident Fund suffered a massive loss in fuel levy during the lockdown and had a financial shortage before that in any event.  Moemi also said that the Road Accident Fund posed a threat to the national fiscus.

Posted by Michael de Broglio on Friday 19-Jun-20 Share on Facebook   Tweet It

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Ruby  said:
on Wednesday 08-Jul-20 09:00 AM
With less money available to waste and fewer reserves due ro covid19, i really hope these bailouts come with strict conditions. We cannot afford these year-on-year waste.

Shristi  said:
on Wednesday 08-Jul-20 08:59 AM
I am pretty sure that they will get these funds. But the question is will they be used for the right reasons?

Joyce  said:
on Tuesday 07-Jul-20 03:53 PM
I think Government will give money to the Department of Transport think that the RAF will benefit recover and able to get on it's feet again

Henrietta  said:
on Tuesday 07-Jul-20 03:26 PM
I won't be surprised if the money is being stolen. Some many corruptions within the government that nothing surprises us anymore but I really hope that this is not the case. So many people have lost faith let see if the government will pull this through.

Tamaryn  said:
on Tuesday 07-Jul-20 03:08 PM
If the Transport Department is asking for funding not just for the RAF, but for ACSA, SACCA and SANRAL as well there is certainly not going to be R17,2 billion heading the RAF's way. It will be a lot less, if at all possible to start with.

Bianca Taljaard  said:
on Tuesday 07-Jul-20 02:13 PM
Our economy took a huge loss during this pandemic and it will take us many years to recover from it. I really hope that things at the RAF will also start going back to normal soon.

Sinead  said:
on Wednesday 01-Jul-20 10:30 AM
Of course this will happen! The economy has suffered so badly because of this lockdown. I just hope (if additional funding is supplied) it gets done properly and isn't wasted or mismanaged.

Alexis  said:
on Tuesday 30-Jun-20 02:11 PM
It is something of a conundrum and I do not think that we as a country can afford it. The lockdown has caused a lot of damage to the economy, and I feel that it will take some time for it to get better, and we were not doing that great beforehand. Though we are all in a world of uncertainty and all we can do is wait and see.

Melissa van Tellingen   said:
on Tuesday 30-Jun-20 02:04 PM
Yet another red flag. Where are these funds going to come from?

Helen  said:
on Tuesday 30-Jun-20 10:12 AM
It is very sad to see where South Africa is heading at this moment and which "piggy bank" will be used to finance all sorts of requests. Being in lock down - day 97 soon will be 100 days though!
Lets all hope for the best and hoping all the problems will fall away!!!

Karien  said:
on Tuesday 30-Jun-20 08:23 AM
South Africa simply does not have the necessary funds to meet these demands of the Transport Department. The RAF was hard hit by the lockdown, but hopefully as the economy reopens the monies received from fuel levies will give the RAF a little boost.

Chante  said:
on Tuesday 30-Jun-20 08:20 AM
It is frightening when one realises how many aspects of the country the lockdown really had influence on, not only small and big businesses but also large organizations. The country is really going to have to rebuild all the funds that it has lost.

brumilde  said:
on Tuesday 30-Jun-20 07:54 AM
I dont know where the funds are going to come from that everyone is asking, maybe the government should look at restructuring and cutting down staff as well. Or reducing those lekker bonuses at the end of the year. When is Zuma going to pay back what he took,,,

Dasanya  said:
on Monday 29-Jun-20 04:52 PM
It is no secret that the RAF had a cash flow problem before the lockdown and which definitely got worse as a result of the lockdown. It is just sad that this will impact heavily on those in desperate need of the funds.

Daniella  said:
on Monday 29-Jun-20 08:40 AM
The Country has a long way to go to pick our economy up, its going to be tough but I think in South Africa we use to constant changes in our economy. All I hope is that we all come out this stronger.

Nikita  said:
on Friday 26-Jun-20 04:57 PM
The RAF are running in circles at the moment with the chaos that the acting CEO presented. Only time will tell the true impact that this chaos together with the funding issue will have on deserving clients.

thembi  said:
on Thursday 25-Jun-20 04:26 PM
I think this is bad news and also for the people who have to pay a bigger fee using taxi service. I hope that something will happen soon

sandra  said:
on Thursday 25-Jun-20 04:25 PM
During this time the economy took a huge loss and it will take years to recover from it. I just hope that the RAF will pull-up its socks and start working normally soon enough

Brenda Strydom   said:
on Thursday 25-Jun-20 03:51 PM
The economy took a huge knock due to the lockdown but its always about money. I really hope that things change.

Claudia B  said:
on Wednesday 24-Jun-20 05:05 PM
It's really so shocking to read, it's a lot of money. the economy took a big dip in the lock-down time. Let's hope the Road Accident Fund will go back to "normal" soon.

Prishani  said:
on Wednesday 24-Jun-20 04:55 PM
I sincerely hope that the relevant spheres of government will assist where necessary. I also hope that the proper checks and procedures are followed when dealing with the additional funding.

Melissa  said:
on Wednesday 24-Jun-20 09:54 AM
Everything is always about money, they just want, want and want. Don't they understand that the economy took a big hit due to the lockdown and they require money....ridiculous

Ashleigh  said:
on Wednesday 24-Jun-20 09:06 AM
Certainly not a shocker and certainly not the only one in this country needing more funding. I really hope that things change with the RAF for the sake of people that have been affected by road accidents.

Thabitha  said:
on Wednesday 24-Jun-20 08:15 AM
The question is where will these funds come from after the lock down SA is facing lots of serious problems

Michelle D  said:
on Tuesday 23-Jun-20 04:03 PM
It will be very interesting to see what happens with Minister Mboweni's budget speech this week! Lots of big questions to be answered.

Nicolene  said:
on Tuesday 23-Jun-20 01:28 PM
The economy took a huge dip during lock-down and we all wish for everything to return back to normal, but it will still take a few months or even years and I can tell you now that our economy will never be like it used to be before.

Ziyanda  said:
on Monday 22-Jun-20 12:42 PM
This does not surprise me because government entities are always seeking additional funding while they are not being well-run.

Colleen  said:
on Monday 22-Jun-20 12:26 PM
The cash-flow situation at the Road Accident Fund should first be streamlined before more funding is injected, regardless of the lock down and the dire economic effects it has had on the country.

Lucretia  said:
on Monday 22-Jun-20 10:18 AM
Why am I not surprised that everyone always wants more money. Just like the taxi association wants more money, etc, etc, etc...... where does everyone propose we will get all this "extra" money from...

Natasha  said:
on Monday 22-Jun-20 09:01 AM
Its shocking, i really hope everything will return back to normal as soon as possible. Don't know whats going to happen in the near future.

Danielle  said:
on Friday 19-Jun-20 04:50 PM
I really hope all can go back to normal as soon as Possible. A lot of people depend on the RAF so we hope they can get back on there feet as soon as possible.

Kayla  said:
on Friday 19-Jun-20 04:24 PM
Everything should hopefully soon start returning back to normal. Although alot will never be the same again. Lets a hope a resolution for this can be made that benefits all parties involved.

Roxanne  said:
on Friday 19-Jun-20 01:19 PM
The economy took a huge hit during this lock down and if everyone plays there part and works hard, we can rebuild our country.

Courtney  said:
on Friday 19-Jun-20 12:44 PM
Such a scary thing! I trust everything will get back to normal soon and obviously only time heals. Everyone should just work hard and bring their bit. Soon this mess will be over and everything back to normal.

Megan  said:
on Friday 19-Jun-20 11:15 AM
As per every odd week that the President addresses us, we will just have to wait and see what happens. Its proven rather wait for action to be taken rather than only the word.

Melandre'  said:
on Friday 19-Jun-20 11:13 AM
Hopefully this provides for an adequate resolution for those victims of motor vehicle accidents who are literally just hanging on their last hope waiting for their RAF claim to finally be paid out. It's deeply sad how many people have lost due to the lockdown.

Nicolle  said:
on Friday 19-Jun-20 09:45 AM
Indeed, insofar as it relates to the Road Accident Fund, there are endless amounts of victims of motor vehicle accident, who, now, not only live with their accident related injuries, but with the difficulties presented by this Corona Pandemic. I am hopeful for solutions.

Clare  said:
on Friday 19-Jun-20 08:49 AM
Well i hope that the get the extra money, we need the Road Accident Fund to start paying our companies. and the clients that need their money because some off our clients are really battling and feel for them so much.

Patrick Sedutla  said:
on Friday 19-Jun-20 08:48 AM
Am sure with a lot of cars parked over the lockdown the Raf levy went down. Our government has proved that they have money and they will grant the request. Lets see maybe they want to use it for block settlement.

Jessica  said:
on Friday 19-Jun-20 08:25 AM
I really hope something drastic happens to help the RAF out honestly. They need like they did before a better way of running things. I think things will get there eventually.

Tayla  said:
on Friday 19-Jun-20 07:51 AM
It's sad and scary how many businesses/people have lost due to the lockdown. It will take some time for everyone to get back onto their feet again.


Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
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