Why a simple accounting change may have slashed the Road Accident Fund's liabilities by R300bn

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The RAF is government’s second-largest contingent liability after Eskom. (Getty Images)
The RAF is government’s second-largest contingent liability after Eskom. (Getty Images)

The Road Accident Fund (RAF), government’s second-largest contingent liability after Eskom, says it is now climbing out of that hole, having reduced its liabilities by over R300 billion by simply changing an accounting policy.

RAF CEO Collins Letsoalo and Transport Minister Fikile Mbalula said at a briefing on Monday that this change in policy was run past auditing firm PWC, so that there could be no allegations that the fund had "cooked the books". According to them the PWC gave the fund the go-ahead.

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