MVA Fund operating income drops

According to the fund's audited results for the full year ended December 2012, offshore investments gains declined significantly last year to P28.5 million from P98.8 million.Besides the fuel levy, the MVA Fund is heavily invested locally and offshore with an investment portfolio valued at P2.7 billion as at December 31, 2012.

Last year the fund's net fuel investments increased by 12 percent from P78.3 million recorded in 2011 due to the decline in provisions for fuel levy rebates.During the 2012 financial year, the fund experienced a significant decrease in expenses with total expenses reducing by P50.5 million from P192.1 million in 2011 to P141.6 million in 2012 mainly due to the decline in net claims provision and prudent management of costs.

Road accident claims from the fund also decreased from a whooping P99.5 million in 2011 to P46 million.In total there were 2,172 road accident claims recorded in the past year, 9.5 percent fewer than during the year 2011.In the financial statement, the fund also announces that it is in the process of partnering local stakeholders to establish rehabilitation centres for accident victims.

'Due to lack of rehabilitation centres locally, the MVA fund relies on South African centres (rehabilitation centres) to rehabilitate accident victims in most cases. The initiative will build capacity as well as reduce the current high costs incurred for referrals to neighbouring countries,' the fund says.   

The fund has also disclosed that it will purchase a mobile office this year in a bid to improve service delivery. The office will see the MVA Fund serving its clients from any strategic location connected to any local road network.Besides its main financial lifeline, which is the fuel levy, the MVA Fund is heavily invested locally and offshore with an investment portfolio valued at over P2 billion.