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SMVAF News - Sincephetelo MVA Fund reserves soar to E182m

29 September, 2014 - Resurgent government parastatal, Sincephetelo Motor Vehicle Accidents Fund’s (SMVAF) reserves grew to a resounding E182.4million in 2012 in spite of a decrease in fuel levy. In its 2012 Annual Report, the Fund reports a substantial reserves increase of 16.7 percent from E156 256 530 in 2011.Sincephetelo MVA Fund Chief Executive Officer Helmon Vilakati says this growth in reserves augurs well for the Fund’s outstanding claims liabilities, whose discounted value stands at E275.4million as opposed to E262.6million the previous year.

“These figures clearly demonstrate that, financially, we have achieved a stable position, despite a noticeable decline in revenue headlined by the significant decrease in fuel levy from E75 398 902 in 2011 to E70 820 628 in 2012,” Vilakati says.That, coupled with a decrease in interest rates was, however, still not enough to upset the Fund’s firm financial position. SMVAF derives its income mainly from a fuel levy charged by all filling stations that operate in Swaziland. Meanwhile, SMVAF recorded a net surplus of over E26 million in 2012, a 41 percent increase from E15 235 029 in 2011.

The increase bodes well year-on-year as the 2011 figure paled against that of 2010, which was much higher in comparison.Vilakati is also quoted in the report as saying the Fund’s total assets went up from E425 922 446 in 2011 to E475 243 869 at the end of the reporting period in 2012 “This renders the Fund financially sound in spite of hostile external forces impacting the Swaziland economic space; moreso as reserves attributable to the Fund accumulated to E182 394 010 above its liabilities; up 16.7 percent when contrasted with the previous year’s E156 256 530,” says Vilakati.Although the net operating income after benefits and claims expenses was E27 607 931, expenses that totalled to E20 701 430 yielded an operating surplus of E6 906 501. Noteworthy, in 2011 the Fund had recorded an operating deficit of E6 010 907.Boosting the 2012 operating surplus was E19 230 979 investment income that took up the total surplus figure to E26 137 480.


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