Road Accident Fund Crisis Deepens: Major Changes Ahead as New Board Tackles R19 Billion Claims Backlog – September 2025 Update

RAF Leadership Overhaul Brings Hope for Outstanding Claims Resolution

The Road Accident Fund (RAF) is undergoing dramatic changes as South Africa’s financially distressed compensation scheme faces its biggest crisis yet. With nearly R19 billion in outstanding claims older than 180 days and a dissolved board, the new interim leadership is promising aggressive action to address the mounting backlog that has left thousands of road accident victims waiting for compensation.

New Interim Board Takes Charge

Following Transport Minister Barbara Creecy’s decision to dissolve the RAF board in July 2025, interim chair Kenneth Brown has outlined ambitious plans to tackle the organization’s systemic problems. The new interim board is committed to starting aggressive repayments from October 2025, marking a significant shift in the fund’s approach to claims processing.

“Our intention, once we have dotted all the ‘i’s’ and crossed all the ‘t’s’, is to start repayments aggressively from October onwards,” Brown stated during recent meetings with attorney associations.

R19 Billion Claims Crisis Explained

The RAF currently faces an estimated R19 billion in outstanding liabilities for claims older than 180 days, which have become immediately payable following a High Court ruling. The court dismissed the RAF’s urgent application for an extension of the 180-day payment moratorium, meaning the fund must now pay claims within 14 calendar days instead of almost six months.

This financial crisis extends beyond legal claims, with the RAF owing approximately R2 billion to service providers including healthcare facilities, hospices, and physiotherapists.

Parliamentary Oversight Intensifies

The Standing Committee on Public Accounts (SCOPA) announced plans for a comprehensive Road Accident Fund Oversight Enquiry on September 19, 2025. This parliamentary intervention signals growing concern about the fund’s governance failures and financial management.

The Democratic Alliance has also called for investigations to cover all wrongdoing, noting that the RAF levy costs South Africans approximately R50 billion per year.

Settlement Drives and Modernization Efforts

In August 2025, the RAF Pretoria Regional Office announced a block settlement drive from August 6-8, requiring law firms to submit up to 10 prepared claims for swift processing. This initiative represents part of the fund’s efforts to clear the massive backlog of pending claims.

The new interim board is also considering comprehensive modernization of the RAF’s claims systems, moving toward a “cradle to grave” approach that would use technology with first responders to initiate claims processes immediately after accidents occur.

Legal Fraternity Relations Improve

Recent meetings between the RAF interim board and attorney associations have shown promising signs of cooperation. Conrad van der Vyver from the Pretoria Attorneys Association described “a clear meeting of the minds” during discussions with the new leadership.

Personal Injury Plaintiff Lawyers Association (Pipla) chair Advocate Justin Erasmus noted that the new interim board appears committed to clearing the mess created by previous fund executives, though challenges remain regarding the proposed Road Accident Benefit Scheme (RABS) Bill.

RABS Bill Controversy Continues

Minister Barbara Creecy’s intention to finalize the Road Accident Benefit Scheme (RABS) Bill remains contentious. The proposed no-fault system aims to make it easier for road accident victims to access benefits without costly legal bills, but faces strong opposition from the legal fraternity and other RAF stakeholders.

Financial Sustainability Challenges

The RAF’s financial model faces long-term sustainability concerns, particularly with the potential growth of the electric vehicle market, which could significantly impact fuel levy collections that fund the organization. The interim board acknowledges that fundamental reforms are necessary to ensure the fund can meet its constitutional obligations to road accident victims.

What This Means for Claimants

For the thousands of South Africans awaiting RAF compensation, these developments offer both hope and continued uncertainty. While the new interim board has committed to aggressive payment schedules starting in October 2025, the fund’s lack of immediate liquidity means payments will need to be carefully scheduled and managed.

The interim board has emphasized that detailed cash flow management and financing arrangements will be necessary to address the R19 billion backlog, with full details to be released after board deliberations.

Looking Ahead

The Road Accident Fund’s crisis represents one of South Africa’s most significant public administration challenges, affecting thousands of vulnerable road accident victims who depend on timely compensation. The success of the new interim board’s aggressive turnaround strategy will be closely watched by parliament, the legal fraternity, and most importantly, the claimants whose lives depend on these critical payments.

As the RAF moves forward with its modernization plans and payment schedules, the coming months will be crucial in determining whether this latest intervention can finally resolve the fund’s chronic problems and restore confidence in South Africa’s road accident compensation system.

Stay updated on the latest RAF developments and other important South African news by following our regular updates.