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									                                MEDIA RELEASE
                                24 February 2010

                              (For Immediate Release)


The Pretoria High Court today heard an application by the Department of
Transport asking for the postponement of a court challenge involving the DoT,
and Road Accident Fund as respondents, and the Law Society and others as
applicants. The group is challenging the constitutionality of the Amendment Act
19 of 2005 that was jointly introduced by RAF and DoT as part of a broader
strategy to transform the Fund into a fair and equitable system for road accident

Acting Judge Hans Fabricius dismissed the application with costs and the matter
is expected to continue from Monday to Wednesday next week as scheduled.

Jacob Modise, CEO of the Road Accident Fund said while the Fund supported
the Minister of Transport Sibusiso Ndebele in the application for a postponement,
the RAF was nonetheless ready to defend all the necessary changes implemented
in the Act in order to plug all the loopholes that have left it vulnerable to wide
spread abuse.

Seven commissions of inquiry have stated that the current system is failing
citizens of the country and is in need of drastic changes. Even some in the legal
profession agree that the system is being abused by their colleagues, as an email
being circulated amongst members of the legal fraternity clearly states.

Modise said: “In the face of such blatant admission by the legal profession that
they do not have the interest of the South African public in mind when they fight
for retention of a system that fails its citizens, I wonder whether anyone can truly
give credence to the myriad of facades and untruths they continue to paddle
(mismanagement, access to the courts, RAF acting as player and referee, etc.).”

“The current system does not meet its twin social objectives of re-integrating
victims of road accidents back into society from a health and economic
perspective as well as provide protection from economic ruin,” said Modise.

“This is a travesty. The current fault-based scheme not only denies South African
citizens immediate access to medical treatment and other benefits because they
must first prove fault before they can access these benefits, it also allows the
legal profession to rob the victims of their compensation by charging them a
success fee,” he said.

“It is not surprising, therefore, that the legal profession is fighting for the
maintenance of the status quo - it is simply greed and self-interest”, added

A recent communication issued by SAAPIL, of which a copy is attached, seems
to confirm this. In it, the Chairman of SAAPIL, Mr Ronald Bobroff, admits
that the “vast majority of [advocates and lawyers] depend entirely on RAF
work”; that lawyers and advocates “have and continue to grow fat and rich on
RAF work” and that the RAF scheme is being “retained for the entire Legal
Profession” through “to a very large extent … the efforts of SAAPIL”.

Issued by:          Jacob RD Modise
                    Chief Executive Officer
                    Road Accident Fund

Contact Information:
Contact Person:        Mandla Mvelase
Designation:           Executive Marketing & Communications
Company Name:          Road Accident Fund
Contact Details:       Tel + 27 (12) 429 5190


The RAF provides cover to all road users within the borders of SA. The two types of cover
provided are the Indemnity Cover to wrongdoers in an accident who are indemnified from
personal liability for the wrongs they have caused and Personal Injury Cover where victims of
accidents and their families have their medical costs, loss of income, loss of support, funeral
expenses and general damages paid to them.

The RAF mandate, as defined in terms of the Road Accident Fund Act (Act no 56 of 1996), is
the payment of compensation for loss or damage wrongfully caused by the driving of motor
vehicles at any place within the Republic of South Africa.

It is the vision of the RAF to become a sustainable, world class provider of cover for personal
injury arising from the use of motor vehicles in South Africa.

The RAF’s mission includes the rehabilitation and compensation of persons injured as a result
of motor vehicle accidents in a timely and caring manner; and to actively promote safe use of
our roads.

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