Road Accident Fund Crisis Deepens: SCOPA Inquiry, R45.6 Billion Payouts, and Legislative Reform in 2026

Road Accident Fund Under Parliamentary Scrutiny as Crisis Intensifies

South Africa’s Road Accident Fund (RAF) continues to face mounting challenges as 2026 begins, with parliamentary oversight intensifying and significant financial pressures threatening the sustainability of the country’s road accident compensation system. Recent developments paint a picture of an organization in crisis, despite paying out a record R45.6 billion in claims during the 2023-2024 financial year.

SCOPA Launches Comprehensive Inquiry into RAF Operations

The Standing Committee on Public Accounts (SCOPA) has launched a comprehensive oversight inquiry into the Road Accident Fund, following months of repeated summonses and mounting evidence of financial irregularities. SCOPA Chair Songezo Zibi announced that the committee received “just under 100 submissions, some running into hundreds of pages,” highlighting the scale of concerns surrounding the RAF’s operations.

The inquiry focuses on three critical areas:

• Financial Reconciliation: A forensic examination of RAF’s financial records and cash flows, with preliminary estimates suggesting R4.7 billion in exposure from default judgments issued in May 2025
• Procurement Irregularities: Investigation into approximately R1 billion in questionable contracts, including the cancelled R360 million Medicare24 contract
• Governance Failures: Scrutiny of long-running suspensions, unresolved disciplinary processes, and ongoing salary and legal fee accruals

Record Payouts Amid Operational Challenges

Despite the organizational turmoil, the RAF managed to settle claims worth R45.6 billion in the 2023-2024 financial year, demonstrating the fund’s continued commitment to compensating road accident victims. The breakdown of these payments reveals the diverse nature of RAF claims:

• R21.6 billion for loss of earnings
• R12.7 billion for general damages
• R2.6 billion for loss of support
• R1.7 billion for medical compensation
• R47 million for funeral claims

However, operational statistics reveal significant challenges. Of the 105,039 claims pre-assessed between July 2022 and March 2025, 72% failed to meet revised lodgement requirements, creating a substantial backlog and leaving only a small compliant cohort to bear the system’s functional burden.

Leadership Crisis and Board Dissolution

The RAF’s leadership crisis deepened in 2025 when Transport Minister Barbara Creecy dissolved the RAF board in July. This followed the suspension and subsequent contract expiry of former CEO Collins Letsoalo, who unsuccessfully challenged his suspension in court. The organization currently operates without a permanent CEO while recruitment processes continue.

Deputy Transport Minister Mkhuleko Hlengwa acknowledged that the department accepts the RAF is in crisis and confirmed cooperation with the parliamentary inquiry. The leadership vacuum has contributed to operational challenges, with permanent claims headcount falling from 1,886 in 2020 to 1,356 in 2025, while reliance on contractors has increased.

Road Accident Benefit Scheme (RABS) Bill: The Path Forward

The government continues to pursue legislative reform through the Road Accident Benefit Scheme (RABS) Bill, which proposes fundamental changes to South Africa’s road accident compensation system. The RABS Bill aims to shift from the current fault-based model to a no-fault system, potentially streamlining claims processes and reducing litigation costs.

Public consultations on the RABS Bill are scheduled for 2026, offering stakeholders an opportunity to provide input on the proposed reforms. The bill represents the government’s long-term strategy to address the RAF’s structural challenges and create a more sustainable compensation system for road accident victims.

Technological Improvements and Claims Management

Despite organizational challenges, the RAF has implemented technological improvements to enhance claims processing. The Integrated Claims Management System (ICMS), rolled out in 2021, aims to automate adjudication, case management, and payments. Recent initiatives include:

• A new CRM-based contact centre for centralized query and complaints handling
• Outbound campaigns reaching 65,000 claimants to recover missing documentation
• Contact centre initiatives achieving a 97% settlement rate for enquiries

Road Safety Concerns and Prevention Efforts

The RAF’s challenges are compounded by concerning road safety statistics. Easter 2024 recorded the highest Easter weekend fatalities since 2019, with 335 deaths representing a sharp increase from 252 deaths in 2023. Human error, vehicle failure, and environmental factors continue to contribute significantly to road accidents.

Major contributing factors include:

• Human factors: speeding, jaywalking, and hit-and-run incidents
• Vehicle-related issues: tyre bursts, brake failures, and poor maintenance
• Environmental factors: poor visibility, sharp bends, and road surface defects

The RAF has responded with comprehensive road safety awareness campaigns, including partnerships with radio stations, school activations, defensive driver workshops, and livestock safety initiatives.

Financial Sustainability Concerns

With R19 billion in outstanding claims and a significant backlog, the RAF faces mounting pressure to improve its financial sustainability. The fund operates under strict statutory timelines, requiring submission within two years for hit-and-run cases and three years for identified drivers, with 120 days to settle claims and 180 days to effect payment after settlement or court order.

The Special Investigating Unit (SIU) continues its investigation under Proclamation 44 of 2024, with Minister Creecy requesting confirmation on whether the current investigation covers recent events. Whistle-blower reports have also raised concerns about potential involvement of law firms and members of the judiciary in irregularities.

Looking Ahead: 2026 Priorities

As 2026 progresses, several key developments will shape the RAF’s future:

• Completion of the SCOPA inquiry with findings and recommendations expected before parliament closes in December
• Public consultations on the RABS Bill to gather stakeholder input on proposed reforms
• Appointment of a new permanent CEO to provide stable leadership
• Implementation of improved claims management processes to reduce backlogs
• Continued focus on road safety awareness and prevention initiatives

Contact Information for RAF Claims

Road accident victims and their families can contact the RAF through multiple channels:

• Phone: 087 820 1 111 (Monday to Friday, 07h45 to 16h00)
• WhatsApp: 071 605 4707
• SMS: 44930
• Email: contactcentre@raf.co.za
• Website: www.raf.co.za

Conclusion

The Road Accident Fund stands at a critical juncture as 2026 unfolds. While the organization continues to fulfill its mandate of compensating road accident victims, with record payouts of R45.6 billion in the previous financial year, significant challenges remain. The ongoing SCOPA inquiry, leadership crisis, and operational difficulties highlight the urgent need for comprehensive reform.

The proposed RABS Bill offers hope for a more sustainable future, but successful implementation will require careful stakeholder consultation and robust governance structures. As South Africa grapples with persistent road safety challenges and the RAF’s financial sustainability concerns, the coming months will be crucial in determining the future of the country’s road accident compensation system.

For road users, the message remains clear: responsible driving and adherence to road safety regulations are essential not only for personal safety but also for reducing the financial burden on the RAF and, ultimately, South African taxpayers. The goal of fatality-free roads may seem ambitious, but it represents the most effective long-term solution to the RAF’s challenges.