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SMVAF Fund realises E39 million surplus

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MBABANE – For the first time in 10 years, the Sincephetelo Motor Vehicle Accident Fund (SMVAF) has recorded a surplus of E39 million for the 2008/2009 financial year.

This is a major turnaround by the organisation after experiencing a deficit of E19 million in the previous financial year (2007/2008).
Prior to 2007/2008, the SMVAF recorded a deficit of E61 million in 2006/2007 and a further E71 million in the 2005/2006 financial years.

During a business breakfast meeting with Editors yesterday morning at the Mountain Inn, SMVAF Chief Executive Officer Helmon Vilakati attributed the great financial recovery to a lot of factors, that include, the formulation of a strategic plan that helped transform the organisation.

“Against the backdrop of poor performance, the Fund has had to take drastic measures in order to deal with several challenges prominent amongst which is the actuarial deficit, ever escalating road accidents, operational or financial controls and service delivery,” Vilakati outlined.

With reference to the strategic plan, Vilakati said: “In 2008, the fund formulated a strategic plan with a view to transforming the SMVAF and give it capability to adequately carry out its mandate by primarily being self sustainable (financially, etc) and delivery of better services to the public.

” At one point, the CEO said, the organisation was swimming in outside claims amounting to E85 million but that was now a thing of the past.  
Even though the E39 million surplus had been realised, Vilakati was quick to warn that this did not mean the organisation had a lot of money.

He said the surplus was neither profit nor dividend but was money that belonged to the public.
The CEO said tighter controls in the processing of claims and eventual payouts were some of the contributing factors that made the surplus possible.

“Continued support from government in increasing fuel levy and also through subvention have played a big part in the transformation as well as having prudent financial management and investments,” Vilakati said.   
The strategic plan helped SMVAF carry out the restructuring of its departments, pursue excellent customer service, be financially self-sustainable as well as take a leading role in road safety campaigns.

 Makhosi Magongo introduced as PRO

MBABANE – The Sincephetelo Motor Vehicle Accident Fund, yesterday, formally introduced Makhosi Magongo as its Public Relations Officer.

The organisation’s CEO Helmon Vilakati said they believed that Magongo, who was employed about two months ago, was the rightful candidate for the job.
“We believe that Magongo is qualified for the job, has the right attitude and the necessary skills to carry out the duties of this office efficiently,” Vilakati said.

Magongo joined SMVAF from the Times Group of Newspapers where he had worked for the Times of Swaziland Sunday and the Times of Swaziland daily newspapers.

Magongo holds a Bachelor of Arts in Social Science (BASS) Degree from the University of Swaziland. 
Meanwhile, the organisation also introduced Charles Sukati as the Human Resources Manager and Sydney Jele as Claims Manager.

SMVAF Satellite offices coming

MBABANE – Opening satellite offices by the SMVAF is one of the major projects that the organisation is contemplating.

Responding to questions from Swazi News Editor Thulani Thwala on the possibilities of such offices, CEO Helmon Vilakati said they had noted that their clients sometimes experienced difficulties accessing their services as some were from far flung areas.

“Sometimes clients ask our officers for transport fare as they constantly have to travel long distances coming to our offices yet we discourage giving them any money before their claims are processed as this might cause complications in future,” Vilakati said.

The CEO said the organisation’s current offices were not suitable, especially, for the elderly because of the stairs one has to climb.
“I’ve also grown old to be climbing the stairs of the building we’re occupying and this brings up the question of whether or not we need to find new offices before opening the satellite ones,” Vilakati said.

Fired senior managers were implicated in fraud

MBABANE – Some of the senior managers who were dismissed by the SMVAF were found to be implicated in defrauding the organisation.

CEO Helmon Vilakati said the necessary legal steps were taken after it was discovered that some of the managers’ hands were not clean.
“They were suspended and eventually dismissed but others sought court redress where they won and were compensated by the organisation,” Vilakati said when responding to questions from Weekend Observer Editor Alec Lushaba.
Vilakati said the organisation, had since adopted zero tolerance of fraudulent activities by employees.
He said “even those found to have stolen toilet paper would be fired”.
The CEO said they were aware they had to put in place tighter controls because inside jobs could not be ruled out.

Lawyer cheats accident victim E200 000

MBABANE – A motor vehicle accident victim who lost an arm as a result of the mishap, saw his lawyer swindling him of over E200 000.

This was revealed by SMVAF Chief Executive Officer Helmon Vilakati yesterday, who told the media that this was just one of the cases where lawyers had been implicated in cheating their clients who had filed claims with the organisation.

“This accident victim was given compensation of E424 000 by SMVAF, which I must admit was not enough when considering the person’s injuries.
“We later discovered that the victim’s lawyer had taken half of the amount which was wrong,” Vilakati said.
The CEO said lawyers were charging clients exorbitant fees, something that did not happen if accident victims filed their claims directly with the organisation without going through legal representatives.

Vilakati said this when reiterating statements he previously issued, to the effect that accident victims do not have to go to through lawyers when filing their claims.

“The issue of lawyers is a very sensitive one as I’ve been criticised by those that have misinterpreted me as calling for clients never to go to lawyers. However, all I’m saying a lawyer is not needed when filing a claim with SMVAF,” said Vilakati.
Vilakati said filing the claim directly with SMVAF did not cost a cent and was a quicker process than going through lawyers.

Banks also not so clean

 MBABANE – Banks have also been implicated in the defrauding of the SMVAF and motor vehicle accident victims.

CEO Helmon Vilakati said banks were found to lack the necessary checks and balances in cases where for instance an accident victim used two surnames.
“The victim might want the money to be deposited in an account which is registered under his/her personal surname yet his/her ID bears a marriage surname. In that case, a fraudulent birth certificate might be used to have the money deposited into the account and cleared without the involvement of the victim thus cheating them in the process,” Vilakati said.
In bits and pieces
*   SMVAF does not reward accident victims but compensates them
*   There are three types of claims;

1. Personal injuries

2. Dependant’s

3. Funeral expenses.
 

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