RAF rings up R4.8bn in default judgments in 3 years

Transport Minister Sindisiwe Chikunga said the reasons for the default judgments were due to the RAF electing not to defend legal actions for claims that had become valid in terms of sections of the RAF Act. Picture: Ayanda Ndamane/African News Agency (ANA)

Transport Minister Sindisiwe Chikunga said the reasons for the default judgments were due to the RAF electing not to defend legal actions for claims that had become valid in terms of sections of the RAF Act. Picture: Ayanda Ndamane/African News Agency (ANA)

Published Oct 17, 2023

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Transport Minister Sindisiwe Chikunga has revealed that the Road Accident Fund (RAF) has notched up R4.8 billion in 1 725 default judgments issued by various courts over the past three years.

Chikunga said that the reasons for the default judgments were due to the RAF electing not to defend legal actions for claims that had become valid in terms of sections of the RAF Act.

“These are claims that become valid because they were not objected to within the stipulated 60 days.

“The RAF does not want to incur further legal costs in defending valid claims; as a result, the judgments are granted in default without incurring costs of defending attorney and counsel,” she said.

Chikunga said in her written response to parliamentary questions from DA MP Alf Lees that the RAF did not possess a record of default judgments in the period from 2017 until March 2021.

“The keeping of records for default judgments granted against the RAF was only initiated at the instance of the new executive that joined the RAF in 2020.

“The new executive realised that there was an increasing number of default judgments being granted against the RAF.

“Flowing from the realisation mentioned above, a register was then created for the purpose of keeping a record of all default judgments,” she said.

Chikunga’s response showed that 483 default judgments valued at R1.4 billion were granted against the RAF in 2021.

The judgments increased to 1 116 and were valued at R2.9bn in the following year.

In 2023, there were fewer judgments, at 126, that were worth R483m. Chikunga would not be drawn into naming the parties that were awarded default judgments by the various courts.

“The names and details of claimants in whose favour default judgments went will not be disclosed as per the Protection of Personal Information Act and risk of the claimant being put at risk of possible criminal attacks,” she said.

Instead, the minister provided the total number of judgments that were awarded by individual courts across the country.

The Gauteng High Court, Pretoria recorded the highest number of default judgments at 1 193 and valued at R3.5bn, followed by Gauteng High Court, Johannesburg with 54 (R278m), Pretoria with 101 judgments worth R229m, Free State High Court with 20 judgments valued at R53.8m, and Klerksdorp Regional Court with 38 judgments worth R10.4m.

The Limpopo High Court recorded 35 judgments worth R88.3m, Mbombela High Court 31 valued at R76m, Polokwane circuit court 64 judgments worth R202m and Mpumalanga circuit court with 15 judgments worth R49m.

Chikunga said a total of 1 182 assets were removed from RAF offices by the sheriff of the court when writs were issued against the entity between 2017 and 2023.

“The value of these assets at the time of removal amounts to R417 261.”

The minister also revealed that the RAF spent R7 179 307 on the VIP protection of its executives between April 2017 and April this year.

She said the RAF has a duty to provide and maintain physical security and a secure occupational environment for its employees.

She said physical protection was provided by the RAF, threat and risk assessment by the State Security Agency, SAPS Crime Intelligence and/or security advisory services.

Her response shows that RAF personnel were provided with security for periods ranging from four days to 13 months.

The RAF paid security costs towards its CEO, Collins Letsoalo, to the tune of R5.2m in both the 2021-22 and 2022-23 financial years.

The RAF board chairperson and deputy chairperson have had security provided for six months to the tune of R 1 549 740 in the 2022-23 financial year.

Others who received protection include Justice Mdluli, Gontse Baloyi, Tshepo Moatshe and Nozipho Gumede.

Cape Times