The Motor Vehicle Accident (MVA) Fund CEO Michael Mooketsi Tlhagwane has said the year 2016 was a challenging year for the fund owing to massive losses that were recorded. Writing in the Fund’s 2016 annual report, Tlhagwane said the losses were attributable to depressed primary sources of income, exchange losses on offshore investments and significant increase in claims. “The losses recorded, if not reversed, may compromise the fund’s financial stability and its ability to effectively discharge its mandate,” he said. Tlhagwane said he is looking forward to meeting the challenges facing the fund through a robust turnaround strategy aimed at improving MVA’s performance. He said key areas of focus will be promotion of road safety, efficiency in claims processing, responsive case management, cost containment and improving investment returns. MVA recorded a loss of P260.6 million as at 31st December 2016 which is a decline of 195 percent in comparison to the comprehensive income of P275.6 million recorded as at 31st December 2015. The decline is attributable to higher foreign exchange losses owing to the appreciation of the Pula against the US Dollar and the net fair value losses available for sale investments.
MVA has investments in almost listed entities in domestic equity investments as well as offshore investments. Expenses also increased during the period, going up by P112.5 million from P294.9 million in 2015 to P407.4 million in 2016 due to increase in claims provision. The net provision in claims rose from P148.9 million in 2015 to P239.5 million in 2016. Tlhagwane said claims increased as a result of increase in road traffic crashes and deaths. In order to improve service delivery, Tlhagwane said MVA will continue to adopt innovative strategies to improve service delivery. He said the Fund is currently in the process of implementing the Case Management Information System to assist in the efficient execution of the case management operations. The implementation of the system, Tlhagwane explained, will enable MVA to closely monitor medical treatment and rehabilitation of those injured in road crashes to improve on their quality of life. Tlhagwane said the lack of rehabilitation centres locally leading to referrals to South Africa remains a great priority area for the Fund. Another priority, he said, is the ever increasing road carnage tolls.