Latest financials from the Motor Vehicle Accident (MVA) Fund show that the corporation’s offshore investments increased by P214.6 million from P779.9 million in 2012 to P994.5 million in 2013. A close look at MVA Fund audited financial results for the year ended 31 December 2013 shows that┬áthe Fund recorded a total operating income of P330.5 million in 2013, being an increase of 22.percent┬ácompared to the P269.1 million recorded in 2012.
The increase was primarily attributable to foreign┬áexchange gains on offshore investments, which increased by 262.1 percent from P29 million to P105.0┬ámillion. The net fuel levy decreased by 5.0 percent from P87.7 million recorded in 2012 to P84.2 million in┬á2013 due to the increase in provision for fuel levy rebates. MVA net third party income also declined by 5.0 percent from P8.0 million in 2012 to P7.6 million in 2013.
Also, net investment income decreased by P4.0 million from P129.7 million in 2012 to P125.7 in 2013. The decrease is said to be mainly attributable to lower dividend income in 2013. At the same time its balance sheet indicates that┬átotal assets increased from P2.7 billion in 2012 to P3.2 billion in 2013. The increase is said to be a result┬áof the notable performance of both local equities and offshore investments.┬á┬áThe local equities increased┬áfrom P992.3million in 2012 to P1 223.1 million in 2013 on the back of price increases for most of┬áthe local shares held on the portfolio as well as purchases amounting to P43.0 made during the year.
However, MVA’s investment in properties has since decreased by 6 percent from P105 million to P99 million due to fair value loss of P7 million. The reserves increased from P2.1 billion in 2012 to P2.5 billion in 2013 while non-current liabilities, which are mainly trust liabilities, increased from P388.0 million in 2012 to P448.7 million in 2013. Meanwhile the Fund has confirmed that it is in the process of implementing the Case Management Information System to assist in the efficient execution of case management operations.
MVA Fund said the implementation of the system will enable the fund to closely monitor medical treatment and rehabilitation of those injured in road crashes to improve their quality of life. MVA Fund Chief Executive Officer Cross Kgosidiile pointed out that due to the lack of adequate rehabilitation centres locally; the fund refers severely injured claimants to rehabilitation centres in South Africa. He stated that in an effort to reduce rehabilitation costs, the fund envisages collaboration with stakeholders to develop rehabilitation centers locally.
“This initiative will build capacity as well as reduce the current high costs incurred for referrals to neighbouring countries. The Fund will also increase its service distribution network to improve service delivery,” he stated.
Kgosidiile also spoke about MVA launching its revised service standards in October 2012 and reviving its commitment to the public by improving service turnaround times. He added that the service standards are monitored on a weekly basis to assess the level of compliance.