RAF CEO Accuses Legal Entities of Undermining Fund amid Heated Reforms

In a fiery media address, Collins Letsoalo, the CEO of South Africa's Road Accident Fund (RAF), vehemently accused attorney Gert Nel and Professor Hennie Klopper of attempting to \"capture\" the fund. The accusations unfolded during a press conference where Letsoalo criticized their actions against the RAF’s current reforms and strategies.\n\nGert Nel, heading Gert Nel Attorneys Inc, specializes in RAF claims. Letsoalo tagged him as an \"imposter\" engrossed in what he describes as deceitful tactics to derail the fund’s transformation. He referenced Nel’s recent public activities, including an open letter and extensive media coverage, as part of an orchestrated campaign to manipulate public opinion against the RAF’s ongoing administrative overhaul.\n\nProfessor Hennie Klopper, an emeritus professor at the University of Pretoria, also came under Letsoalo's fire. Klopper has penned articles and participated in discussions critically examining the RAF's handling and policy adaptations, actions which Letsoalo deems as alignment with Nel’s objectives.\n\nCentral to the controversy is the RAF Amendment Bill proposed under Letsoalo’s leadership, aiming at eliminating attorneys’ roles in the claims process. According to Letsoalo, this move threatens the lucrative earnings of law firms like that of Nel, who from 2019 to 2024 received over R2.2 billion from RAF claims. The CEO argues that this reform is imperative not only to curb legal expenses but also to enhance fund efficacy and ensure greater direct benefits to accident victims.\n\nThe debate intensified with Nel’s outright denial of launching any campaign against the RAF but admitted to criticizing the fund’s policies which he claims restrict victims' access to deserved compensations. He further highlighted that several RAF policy shifts have been judicially overturned, asserting these reforms as illegal. Nel is contemplating a defamation lawsuit, refuting Letsoalo’s allegations as baseless and defamatory.\n\nThe discourse extends to academic circles with Klopper’s critiques, particularly regarding the RAF’s controversial accounting policy shift, which significantly altered its reported liabilities. This policy saw the RAF’s liabilities drop from R331 billion in 2019/20 to R34 billion in 2022/23, a change that drew sharp criticism including a disclaimer from the Auditor-General.\n\nDespite these contested reforms, Letsoalo stands by the RAF’s strategies, citing they prevented the fund's collapse and significantly cut down the fund's legal costs, saving billions. He remains critical of any opposition, suggesting that thwarting these reforms serves particular vested interests rather than public or national welfare.\n\nThis unfolding saga lays bare the tensions between state entities and private legal practitioners, with significant implications for South Africa’s road accident victims and the broader legal and governance frameworks.