Pretoria - The Road Accident Fund (RAF) yesterday approached the Gauteng High Court, Pretoria, asking for an extension to pay off its debts.
However, an agreement was reached between the RAF and various law firms that all claims older than 180 days be paid before the end of October.
The 180-day payment runs from the date on which court orders for payments had already been granted in the individual cases or from the date on which settlements had been reached.
This is provided that the RAF has been notified by the various lawyers representing claimants waiting for more than 180 days for payment by the end of September.
This, in effect, means that claimants who do not receive their payments on or before the end of October and who have been waiting for more than 180 days will be able to issue writs of execution with the aim to attach the assets of the fund for payment.
Another settlement reached yesterday between the RAF and the various law firms was that writs of attachment and warrants of execution based on orders already granted or settlements reached, but which are not older than 180 days, will be suspended for another six months in order for the entity to pay up by then.
The RAF turned to the Gauteng High Court, Pretoria, in an application lodged against the Legal Practice Council and the various law firms to obtain yet another reprieve from paying claims older than 180 days without facing having its assets attached.
This is a sequel to an application launched in April last year in which the fund asked for a reprieve from having its assets sold on execution due to non-payments following its dire financial position.
The court at the time ordered the RAF to pay its oldest claims first and gave it six months to settle claims older than 180 days.
The execution of the writs of execution in these cases were also kept on hold pending payments within the stipulated time frames.
The RAF at the time argued that a moratorium on payments was necessary to prevent it from financially collapsing.
Chief executive Collins Letsoalo said times were difficult and it was in the public interest for the RAF to continue with its work without having to face the threat of having its assets attached all the time.
As many of these claims were not paid in time, the RAF yesterday wanted another lifeline before the matter was settled shortly before the proceedings began.
In its written submissions to court, advocate Brenton Geach SC, who represented the Pretoria Attorneys Association, said the court should put its foot down in giving the RAF “another payment holiday”.
The association was earlier admitted as a friend of the court.
Geach questioned why the RAF now, nearly a year after the moratorium on the 180-days payments had run out, asked the court for yet another extension.
He pointed out that many of these claimants were destitute and had been waiting for a very long time to receive their payment from the RAF. While the RAF said that justice required another extension in payments, Geach said “justice cuts both ways”.
It was, however, a win situation for the law firms involved because not only did the RAF agree to pay their outstanding debts (180 days and more), but it will also foot the legal bill for this application.
Pretoria News