Under the National Treasury Management Agency (Amendment) Act, 2000, the management of personal injury and property damage claims against the State and of the underlying risks was delegated to the NTMA. When performing these functions, the NTMA is known as the State Claims Agency (SCA).
The Act sets out two objectives for the SCA :
- To manage claims so as to ensure that the State's liability and associated legal and other expenses are contained at the lowest achievable level; and
- To provide risk advisory services to State authorities with the aim of reducing over time the frequency and severity of claims.
The SCA began operations on 3rd December 2001 and, at that stage, over 700 existing claims were transferred to it by State authorities. In general, these were claims which were either at an early stage in the litigation process or were otherwise considered amenable to early resolution. In its first six months of operations, an additional 500 new claims were submitted for management to the SCA.