RAF bids farewell to CEO
All information contained in this media statement must be attributed to the Road Accident Fund Board Chairperson, Dr Ntuthuko Bhengu:
On behalf of the Board of the Road Accident Fund (RAF), it is with regret that I announce the departure of Chief Executive Officer, Dr Eugene Watson, at the end of June 2017.
While Dr Watson’s five-year term is drawing to a close, his legacy will reverberate for years to come, as he has been pivotal in changing the trajectory of the organisation for the better. His initial mandate from the Board was to steer the organisation in a new strategic direction. Under his guidance, the RAF’s committed members of the Executive and staff have done just that and the organisation is now on the threshold of a new era, one which will see the introduction of a new dispensation which will benefit a far greater number of car crash victims.
The Road Accident Benefit Scheme (RABS) Bill, which is now before Parliament, proposes a comprehensive social security safety net that is not fault-based. It will allow expanded access to much needed benefits to road users, especially lower income groups, public and private transport passengers, widows, orphans and other dependants, previously and currently excluded by virtue of fault. RABS will also provide pro-active assistance to crash victims and family members with the emphasis being on effective access to medical and vocational rehabilitation to improve victims’ chances of re-entering the employment sphere and mainstream economy.
Despite being insolvent since 1981, due to under-capitalisation and an inadequate funding model, the Fund’s fundamental business of claims processing has improved under Dr Watson’s leadership. RAF’s productivity has increased and consequently its expenditure, resulting in the Fund utilising all available cash. Notwithstanding the cash constraints, Dr Watson has continued to steer the organisation on its transformative path with strategies being fulfilled, the backlog of open claims being reduced, fraudsters being arrested, and more claimants being assisted daily, resulting in positive audit outcomes and, for the first time ever, three consecutive clean audits.
Furthermore, the Fund has received numerous awards over the years, improved its people management, increased access to the RAF’s services, and much more. This is in the face of heavy criticism from some quarters that have maligned Dr Watson for the RAF’s financial status quo, despite Finance Ministers and the National Treasury acknowledging that the organisation’s predicament is legalistic in nature – hence the move towards RABS. In addition, increases in the RAF Fuel Levy would not have been granted were it not for government’s confidence that the Fund’s administration and funding was being managed judiciously.
I can confidently say Dr Watson leaves the Fund in the best shape it has ever been in, notwithstanding the extremely challenging conditions we as a public entity have had to operate under. The Board will continue ensuring the RAF remains stable and that the new Scheme is ushered in to ensure the Fund’s financial sustainability while maintaining a high level of productivity and good reputation.
On behalf of the RAF Board and staff, I take this opportunity to wish him all the best in his future endeavours.
An announcement of his successor will be made in due course.
