THE Road Traffic Management Corporation (RTMC) has an accumulated deficit of R203m, up 37% from last year’s deficit of R148m.
Collins Letsoalo, acting CEO of the RTMC, said on Monday that the critical variables needed to make the organisation more effective remained largely unresolved. One of those variables is an increase in the budget allocated to it by the government.
The corporation released its annual report for the year ending March 31 2012, which received an unqualified report from the auditor-general.
Auditor-general Terence Nombembe did, however, emphasise three matters relating to the restatement of figures, the ability of the RTMC to continue as a going concern and material losses of R34m.
Mr Letsoalo said road safety, which costs the economy more than R300bn a year, could not be adequately addressed with a "minuscule budget" of less than R80m. "Every effort will need to be made to increase the RTMC budget in order for it to be efficient and effective."
He said the RTMC had approached the Department of Transport, the National Treasury and the parliamentary portfolio committee on transport.
Mr Letsoalo said if the budgetary constraints were not addressed, the corporation would be left in the same boat next year when the auditor-general presents his report.
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