Road Accident Fund Crisis Deepens: Latest Developments in September 2025

The Road Accident Fund (RAF) in South Africa continues to face unprecedented challenges as September 2025 unfolds, with recent High Court orders threatening to push the already financially distressed entity closer to collapse. This comprehensive update covers the latest developments affecting road accident victims and claimants across the country.

High Court Order Threatens RAF’s Financial Stability

In a significant blow to the embattled Road Accident Fund, a recent High Court order has emerged as a potential catalyst that could push the organization toward complete collapse. The financially-distressed RAF received this judicial setback just 12 hours ago, according to recent reports from Moneyweb, highlighting the precarious position of South Africa’s primary compensation mechanism for road accident victims.

Minister Barbara Creecy Dissolves RAF Board

On July 15, 2025, Transport Minister Barbara Creecy took decisive action by dissolving the entire Board of Directors of the Road Accident Fund. This drastic measure followed persistent governance and operational challenges that significantly undermined the RAF’s ability to discharge its statutory mandate.

Key Governance Failures Leading to Board Dissolution

The Minister identified several critical governance challenges that necessitated the board’s dissolution:

• Protracted and costly litigation on accounting standards applications, straining financial resources
• Inconsistent handling of CEO suspension, creating institutional uncertainty and legal challenges
• Frequent default judgments against the RAF, exacerbating contingent liabilities
• Deep board divisions with most resolutions passed through casting votes rather than consensus
• Failure to fill critical positions including Chief Claims Officer and Head of Legal

Interim Board Appointed to Stabilize Operations

Following the board dissolution, Minister Creecy appointed an interim board in August 2025 to lead the embattled RAF and ensure continuity of operations. This interim arrangement aims to prevent a governance vacuum while a new permanent board is being constituted through a transparent, merit-based selection process.

Parliamentary Inquiry and SIU Investigation Expansion

The Standing Committee on Public Accounts (SCOPA) has launched a comprehensive inquiry into RAF financial matters, with proceedings scheduled to begin in mid-September 2025. Additionally, Minister Creecy has requested the Special Investigating Unit (SIU) to expand its current investigation under Proclamation 44 of 2024 to cover recent events and governance failures.

SCOPA’s Terms of Reference

The parliamentary inquiry will focus on:

• Allegations of maladministration and financial misconduct
• Governance failures and their impact on service delivery
• Recommendations for sustainable operational models

Impact on Road Accident Victims and Claims Processing

Despite the ongoing crisis, the RAF continues to process claims, with the Pretoria Regional Office announcing a block settlement drive in August 2025 to fast-track claims ready for settlement. However, many claimants continue to experience significant delays in receiving compensation.

RAF Settlement Initiatives

Recent efforts to address the backlog include:

• Block settlement drives in regional offices
• Fast-tracking of claims ripe for settlement
• Implementation of new strategic plans focusing on claims management over litigation

Road Accident Benefit Scheme Bill Progress

Minister Creecy has emphasized her department’s commitment to finalizing the Road Accident Benefit Scheme Bill, which will introduce a no-fault system designed to make it easier for road accident victims to access benefits without costly legal proceedings.

Financial Challenges and Future Outlook

The RAF’s financial distress remains a critical concern, with the organization facing:

• Mounting contingent liabilities from default judgments
• Increased litigation costs
• Operational inefficiencies requiring urgent reform
• The need for sustainable funding models

Expert Advisory Committee Formation

To support the development of sustainable operational and governance models, Minister Creecy has initiated the appointment of an Expert Advisory Committee comprising independent experts who will review RAF’s business processes and propose actionable recommendations.

What This Means for Current and Future Claimants

Road accident victims and their families should be aware that:

• Claims processing continues despite governance challenges
• Legal representation remains important for complex claims
• The proposed no-fault system may simplify future claims
• Settlement drives are actively addressing backlogs

Conclusion: RAF at a Critical Crossroads

The Road Accident Fund stands at a critical juncture in September 2025, with recent High Court challenges, governance reforms, and parliamentary scrutiny all converging to shape its future. While the dissolution of the board and appointment of interim leadership represent necessary steps toward stability, the organization’s long-term sustainability depends on successful implementation of proposed reforms and the new Road Accident Benefit Scheme.

Stakeholders, including road accident victims, legal practitioners, and government officials, will be closely monitoring developments as the RAF works to restore institutional stability and enhance its capacity to fulfill its statutory obligations to the South African public.

Stay updated with the latest RAF developments and ensure you understand your rights as a road accident victim in South Africa. For specific claims assistance, consult with qualified legal professionals experienced in RAF matters.