Road Accident Fund South Africa: Key News, Court Rulings & Crisis Update – April 2026

The Road Accident Fund (RAF) in South Africa continues to dominate headlines in April 2026, with a series of landmark court rulings, mounting financial pressures, and ongoing calls for urgent legislative reform. From a Supreme Court of Appeal (SCA) ruling on undocumented foreigners to court orders compelling the RAF to pay hundreds of millions of rands, here is a comprehensive roundup of the latest developments surrounding the RAF.

1. Landmark SCA Ruling: RAF Must Compensate All Accident Victims — Including Undocumented Foreigners

In one of the most significant legal developments of 2026, the Supreme Court of Appeal (SCA) ruled on 17 April 2026 that the Road Accident Fund must compensate all road accident victims in South Africa — including undocumented foreign nationals.

The RAF had appealed a Gauteng High Court ruling that struck down a directive requiring foreign nationals to prove legal presence in South Africa at the time of injury. The RAF argued that undocumented foreigners should be excluded from the compensation scheme, citing fraud prevention and conflict with the Immigration Act.

The SCA dismissed the appeal with costs. Writing for a three-judge panel led by Judge Norman Davis, the court found that the RAF Act makes no exclusion based on immigration status, and that the phrase “any person” in the Act includes all road accident victims regardless of their documentation status.

“These accidents don’t discriminate in respect of the victims thereof between race, gender, age or between illegal foreigners and citizens of this country.” — Judge Norman Davis

The ruling has significant financial implications for the already cash-strapped RAF, as it opens the door to a broader class of claimants. The Portfolio Committee on Transport has since called for the expedited reform of the RAF Act to address the ruling’s consequences.

2. RAF Dealt Twin Blows by the SCA — With No Clear Path to Pay

The SCA handed the RAF two further defeats in late March 2026, both with serious cost implications for the fund.

Post-Judgment Interest Must Be Paid Automatically

In the matter of RAF vs Sheriff of the High Court, Pretoria East and Others, the SCA ruled unanimously that the RAF is obliged to pay post-judgment interest automatically on every late settlement — even when the original court order is silent on the subject. The court confirmed that under the Prescribed Rate of Interest Act, every judgment debt bears interest from the day it becomes payable, as a matter of law. No additional court order is required.

The RAF had argued that a 1997 amendment to interest legislation replaced this automatic mechanism. The court dismissed this argument, clarifying the distinction between pre-judgment and post-judgment interest.

Sunshine Hospital: RAF Ordered to Pay R92 Million

In a second judgment, the SCA ordered the RAF to pay Newnet Property (Pty) Ltd, trading as Sunshine Hospital, more than R92 million within seven days. The hospital had accumulated a mountain of unpaid invoices after the RAF stopped paying in March 2020. Despite obtaining multiple court orders collectively compelling the RAF to pay over R403 million, the fund paid only R336 million and then stopped.

Notably, the court directed the RAF’s acting CEO, Radikwena Phora, by name, to ensure compliance — a mandamus reflecting the court’s dwindling patience with institutional non-compliance.

3. RAF Ordered to Pay 209 Victims R47 Million in 30 Days

On 2 April 2026, the Klerksdorp Regional Court compelled the RAF to comply with all valid and existing court orders in favour of 209 road accident victims and to pay them a combined total of more than R47.3 million within 30 days.

The RAF had refused to process payments, claiming claims were “not registered” on its internal administrative system. The court rejected this defence, ruling that internal administrative errors cannot override valid court orders. Magistrate MB Mamana granted mandamus relief, stating that the RAF’s conduct “reflects a systemic failure to discharge its obligations.”

The court warned that in the event of non-compliance, claimants may approach the court for contempt of court proceedings.

4. The R400–R500 Billion Debt Crisis: South Africa’s Next Big SOE Disaster?

The RAF’s financial situation has been described as one of the most serious threats to South Africa’s national fiscus. According to analysis published in March 2026:

• The RAF’s contingent liabilities could exceed R400–R500 billion — nearly one-fifth of the national government’s entire annual budget.
• Current (immediate) liabilities stand at approximately R100 billion.
• The RAF is technically insolvent, receiving approximately R50 billion per year from fuel levies, with overheads of R7 billion and payouts of R43 billion — leaving virtually no buffer.
• The fund has a backlog of more than 440,000 outstanding claims, some dating back over a decade.
• National Treasury’s 2026 Budget Review projects the RAF’s long-term provisions will rise from R387 billion to R426 billion by 2028/29.

SCOPA chairperson Songezo Zibi described the situation starkly: “The fiscus can’t deal with that.”

The RAF levy has risen from 41.5 cents per litre in 2008 to R2.25 per litre from 1 April 2026 — an annualised increase of approximately 9.8% — yet this remains woefully insufficient to cover the fund’s liabilities.

5. Governance Failures and the Legacy of Former CEO Collins Letsoalo

Much of the RAF’s current crisis has been attributed to governance failures during the tenure of former CEO Collins Letsoalo (2020–2025). Key allegations and findings include:

• Letsoalo earned R6 million per year plus a 40% performance bonus despite five consecutive years of disclaimed or adverse audit opinions from the Auditor-General.
• The SIU uncovered RAF bank accounts with between R1 million and R100 million in alternative accounts.
• A 200-bed Johannesburg hospital was closed in May 2025 after the RAF failed to pay more than R300 million in outstanding debt.
• Whistleblowers alleged senior executives manipulated procurement processes and split invoices to bypass approval limits.
• The RAF accumulated more than R15 billion in default judgments.
• Letsoalo defied a parliamentary subpoena to appear before SCOPA.

Transport Minister Barbara Creecy dissolved the entire RAF board in July 2025 and appointed an interim board. She also wrote to President Cyril Ramaphosa requesting an expanded SIU investigation into the RAF. SCOPA has since initiated processes to criminally charge Letsoalo.

6. Signs of Recovery? Transport Committee Cautiously Optimistic

Despite the dire picture, the Chairperson of the Portfolio Committee on Transport, Mr Donald Selamolela, stated in February 2026 that the RAF is “on the road to recovery.”

“We are satisfied that indeed there is work happening to improve governance and stabilise the operation of RAF. The negativity around how the entity is viewed by the public should cease, and our focus should be to service the claimants.” — Donald Selamolela, Portfolio Committee on Transport

Deputy Minister of Transport Mkhuleko Hlengwa likened the reform process to “fixing an aeroplane while airborne,” acknowledging the complexity of the task while affirming that direct claims remain an immediate priority.

7. Proposed Solutions and the Road Ahead

Experts and parliamentarians have proposed several measures to stabilise the RAF:

• Legislative reform: Capping payouts for future loss of income and medical expenses, and moving from lump-sum payments to staggered disbursements.
• Independent arbitration panels: To resolve cases without going to court, reducing the burden on an already overwhelmed judiciary.
• Independent medical panels: To assess injuries rather than paying for two sets of medical experts per claim.
• Better administration: Defending claims properly, reducing default judgments, and paying valid creditors faster to stop interest from compounding.
• Increased fuel levy: Acknowledging that R2.25 per litre is insufficient for a fund carrying hundreds of billions in liabilities.

However, new legislation is unlikely to come into effect before 2027, and the immediate liability of R100 billion remains a pressing concern for National Treasury.

What This Means for RAF Claimants

For South Africans who have been injured in road accidents and are waiting for RAF compensation, the current situation is deeply concerning. With over 440,000 outstanding claims, court backlogs, and systemic administrative failures, many victims face years of delays before receiving compensation they are legally entitled to.

If you have an outstanding RAF claim, it is advisable to:

• Ensure your claim is properly registered and documented.
• Work with a qualified personal injury attorney who specialises in RAF claims.
• Be aware of prescription periods — claims can lapse if not pursued within the legal timeframes.
• Stay informed about legislative changes that may affect your claim’s value or payment structure.

Conclusion

The Road Accident Fund remains one of South Africa’s most complex and pressing institutional crises. The wave of court rulings in early 2026 — compelling the RAF to pay victims, hospitals, and interest on delayed judgments — underscores the legal and moral obligations the fund continues to fail to meet. While there are tentative signs of governance improvement under the new interim board, the scale of the financial crisis demands urgent, systemic reform.

South Africans, policymakers, and legal practitioners will be watching closely as SCOPA releases its inquiry report, the SIU investigation into Letsoalo progresses, and Parliament moves to reform the RAF Act.

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