Road Accident Fund Crisis Deepens: R7.3 Billion Paid to Foreign Nationals Amid Governance Turmoil

RAF Pays R7.3 Billion to Foreign Nationals Over Five Years

The Road Accident Fund (RAF) continues to face mounting scrutiny as Transport Minister Barbara Creecy revealed that the fund has paid out more than R7.3 billion to foreign nationals across 24,520 claims during the past five financial years. This disclosure comes amid ongoing governance challenges and calls for comprehensive reform of South Africa’s road accident compensation system.

Breakdown of Foreign National Payouts

According to Minister Creecy’s parliamentary response to ActionSA MP Alan Beesley, the RAF payouts to foreign nationals showed significant fluctuations:

• 2022-23: Highest total payout at R1.97 billion across 5,610 claims
• 2021-22: Largest number of claims at 7,487, totalling R2.11 billion
• 2024-25: Recent decline with R546.55 million paid across 1,817 claims
• Highest individual claim: R16.7 million in 2022-23

The minister noted a significant limitation in the data: “The Road Accident Fund claims database does not specify the nationality of individual claimants, but distinguishes between those who are South African citizens and those who are not.”

Governance Crisis Rocks RAF Leadership

The RAF is experiencing unprecedented governance challenges, with the entire management structure suspended by the interim board appointed in August 2025. The crisis has reached Parliament, where the Standing Committee on Public Accounts (SCOPA) has initiated criminal charges against former RAF CEO Collins Letsoalo for failing to appear before the committee despite being lawfully summoned.

Key Governance Issues

Recent investigations have revealed serious structural problems within the RAF:

• Unqualified leadership: The head of the RAF’s legal department lacks a law degree
• Financial irregularities: Accounting discrepancies totaling hundreds of billions
• Management suspensions: Top executives suspended amid governance failures
• Parliamentary standoff: Former CEO’s refusal to cooperate with oversight committees

Legislative Review and Reform Initiatives

The Department of Transport is currently undertaking a comprehensive review of the RAF’s legislative framework, acknowledging that the current fault-based system is financially unsustainable.

Proposed Road Accident Benefit Scheme

Minister Creecy explained: “The current dispensation is unaffordable due to the process of proving fault in settling the claims for damages.” The department intends to replace the existing system with a Road Accident Benefit Scheme that would introduce a no-fault benefit dispensation.

The proposed legislation is currently undergoing necessary processes before cabinet approval for public consultation, though no specific timeline has been provided.

Call for Specialized RAF Tribunal

Legal experts are advocating for the establishment of a dedicated Road Accident Fund tribunal to address the overwhelming burden on South Africa’s High Courts. According to a recent analysis in De Rebus legal journal, RAF matters dominate civil court rolls, creating massive backlogs and delays.

Benefits of a Specialized Tribunal

The proposed tribunal would offer several advantages:

• Enhanced efficiency: Dedicated capacity for RAF matters only
• Specialized expertise: Adjudicators with deep knowledge of personal injury and insurance law
• Cost-effectiveness: Reduced legal costs and faster resolutions
• Consistency: Standardized approaches to damages assessment

Impact on Road Accident Victims

The current crisis has severe implications for road accident victims who depend on RAF compensation. With approximately 50,000 valid RAF claims in danger of prescribing due to the fund’s unlawful RAF1 Form requirements, many victims face the prospect of losing their right to compensation entirely.

Human Cost of Delays

The prolonged litigation process has profound human consequences:

• Victims waiting years for compensation
• Inability to afford medical treatment during delays
• Financial hardship for families who lost breadwinners
• Erosion of public confidence in the justice system

Political Pressure and Public Scrutiny

The RAF’s payment of billions to foreign nationals has intensified political pressure, with MK party MP Thalente Kubheka questioning the minister about stopping compensation to “criminals and foreigners” from tax revenue. This reflects growing public concern about the fund’s financial sustainability and allocation of resources.

Looking Forward: Reform Imperatives

The RAF crisis represents a critical juncture for South Africa’s road accident compensation system. Key reform priorities include:

• Governance overhaul: Implementing robust oversight and accountability mechanisms
• Legislative reform: Transitioning to a no-fault benefit system
• Judicial efficiency: Establishing specialized tribunals for RAF matters
• Financial sustainability: Ensuring long-term viability of the compensation system

Conclusion

The Road Accident Fund’s current challenges reflect deeper systemic issues within South Africa’s approach to road accident compensation. With billions paid to foreign nationals, governance failures, and mounting backlogs, comprehensive reform is not just desirable but essential. The proposed legislative changes and specialized tribunal offer hope for a more efficient, fair, and sustainable system that truly serves road accident victims.

As the Department of Transport continues its legislative review and Parliament maintains pressure for accountability, 2025 may prove to be a pivotal year for RAF reform. The ultimate test will be whether these initiatives can restore public confidence and ensure timely, fair compensation for those who need it most.