road accident fundpmg-assets.s3-website-eu-west-1.amazonaws.com/171031raf.pdf · 2016/17 outcomes...
TRANSCRIPT
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Road Accident Fund
Presentation of the 2016/17 Annual Report
PCOT
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Structure
• The Business
• 2016/17 Outcomes
• Challenges
• The Year at a Glance
• Conclusion
PRESENTATION
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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
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Vision, Mission and Values
The Business
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Strategic Outcomes
The Business
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Strategic Outcomes (continued)
The Business
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Business Model
The Business
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Operations
The Business
Origination
Determination
Litigation
Direct Claims
Finalisation
Post -Finalisation
Human Capital
Risk Management
Forensics
Stakeholder Management
Project Management
Monitoring & Assurance
Marketing
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Highlights
2016/17 Outcomes
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Highlights (continued)
2016/17 Outcomes
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Indicators
2016/17 Outcomes
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Indicators (continued)
2016/17 Outcomes
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Indicators (continued)
2016/17 Outcomes
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Indicators (continued)
2016/17 Outcomes
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Indicators (continued)
2016/17 Outcomes
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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%
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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
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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%
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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
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Statement of Financial Position
2016/17 Outcomes
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Statement of Financial Performance
2016/17 Outcomes
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Cash Holdings
2016/17 Outcomes
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Claims Liabilities
2016/17 Outcomes
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2016/17 Outcomes
Irregular Expenditure
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2016/17 Outcomes
Irregular Expenditure (continued)
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Fruitless & Wasteful Expenditure
2016/17 Outcomes
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Fruitless & Wasteful Expenditure (continued)
2016/17 Outcomes
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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
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The Year at a Glance
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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
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2 Eco Glades Office Park
420 Witch Hazel Avenue
Centurion
0860 23 55 23
www.raf.co.za
Thank You