Windfall for Road Accident Compensation Fund

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Fungayi Chimbindi

The Finance and Economic Development ministry has promised to  raise between $3 million and $5 million for the Road Accident Compensation Fund annually as they set up a board to manage it,” a senior official has said.

The Mail and Telegraph reported earlier this month that the government has set up the fund to relieve the burden on road accident victims and their families in settling medical bills and burial expenses.

Addressing journalists  in the capital on Wednesday,Finance and Economic Development permanent secretary George Guvamatanga said the board would provide its suggestions on how to manage fund and his ministry was still considering further finances if they are deemed necessary.

“At current levels we expect to raise between $3 to $5  million per annum for the fund and I think at the moment we are now engaging to ensure that we put in place a board to manage the fund and they will come up with all the other necessary modalities in terms of what level of support we will provide to the accident victims.

“We will take any recommendations that they will bring onto the table we might even consider an injection from government as well but that will all depend on the recommendations that we will get once the board is in place,” he said.

The government announced its 2019 budget last week entitled “Austerity for Prosperity” which will mean a reduction in government expenditure and increases in revenue collection.

Meanwhile finance minister Mthuli Ncube said the current economic climate made it unviable for a redundancy programme on civil servants as any retrenchment by law should be paid within two years.

“So simply put we are saying if someone whom at the moment as government we are supposed to look for $1 500 to pay them in our current circumstances you are now saying to government can you find $100 000 tomorrow for that person,” he said.

According to statistics, an accident occurs every 15 minutes and five people are killed daily on the country’s roads.
According to statistics, an accident occurs every 15 minutes and five people are killed daily on the country’s roads.

 

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