MVA accumulates surplus of N$7.8 million
The Motor Vehicle Accident Fund (MVA) during 2015/2016, increased its revenue by 7%, investment income by 33% and achieved an accumulated surplus of N$7.8 million for the first time.
The institution’s operational surplus of N$122 million which is 10% higher than the 2014/2015 financial year was also recorded. Additionally, the Fund achieved a funding level of 101% up from 84.2% in the previous financial year.
The MVA Fund unveiled the ladder to excellence through its Stakeholder Dinner held a fortnight ago. The Fund also expressed appreciation to all road safety partners, the stakeholders, medical service providers and Fund staff for their unceasing efforts to address the social evil of road.
The Fund had been operating on an accumulated deficit since its first Actuarial Evaluation in 2004. In the midst of all challenges faced as a growing institution, the Fund attained financial solvency, through the employment of a deliberate cost containment strategy, which tied in with its current strategy (Nzira Zompe 2014-2019), which included the attainment of financial sustainability by the year 2019.
At the event, the Minister of Works and Transport, Alpheus !Naruseb said the MVA Fund has played an immeasurable role, in especially Pillar 4 and 5 which are safer road users and post-crash response, as it undertakes concerted and ongoing efforts in ensuring that road users are educated, with the main purpose to change mind-sets, attitudes and behaviour and to create a deep-rooted culture of road safety among all road users.
Meanwhile, “Previously termed “technically insolvent”, the Fund undertook various strategies and transformed over the years to ensure that it became a financially stable institution which continues to fulfil its mandate and satisfy expectations of all its stakeholders.