Road Accident Fund Crisis Deepens: Major Developments in September 2025

Road Accident Fund Faces Critical Juncture as New Leadership Tackles R19 Billion Claims Backlog

The South African Road Accident Fund (RAF) continues to dominate headlines in September 2025 as the organization grapples with unprecedented challenges while new interim leadership attempts to restore stability and address mounting claims.

New Interim Board Takes Charge

Following Transport Minister Barbara Creecy’s decision to dissolve the entire RAF board in July 2025 due to persistent governance failures, a new interim board led by Chairman Kenneth Brown has been appointed. The new leadership faces the monumental task of addressing nearly R19 billion in outstanding claims that are older than 180 days.

Brown has committed to an aggressive payment strategy, stating that the interim board plans to “aggressively begin paying nearly R19bn in outstanding claims older than 180 days, from next month.” This represents a significant shift from previous approaches and signals the new board’s determination to tackle the crisis head-on.

High Court Ruling Intensifies Pressure

The RAF received a significant blow when Judge Jabulani Nyathi struck the organization’s application for extending the 180-day payment moratorium from the court roll. This ruling means the RAF must now settle claims within 14 calendar days instead of the previous six-month period.

The High Court’s decision places enormous pressure on the financially distressed fund, which reported:

• R10.4 billion in unpaid claims at the end of March 2025
• Total claims liability of R40.4 billion
• Accumulated deficit of R27.8 billion
• Technical insolvency with liabilities exceeding assets by R27.7 billion

Settlement Drives and Modernization Efforts

In response to the mounting pressure, the RAF has launched several initiatives:

Block Settlement Drive

The RAF Pretoria Regional Office announced a block settlement drive in August 2025, inviting law firms to submit up to 10 prepared claims for swift processing. This initiative aims to fast-track claims that are ready for settlement.

System Modernization

The new interim board is considering comprehensive modernization of the RAF’s claims systems. Brown emphasized the need for a “cradle to grave” approach, utilizing technology with first responders to initiate the claims process more efficiently.

Parliamentary Inquiry Launched

The Standing Committee on Public Accounts (SCOPA) has adopted terms of reference for a full parliamentary inquiry into RAF financial matters. The committee aims to begin the inquiry in mid-September 2025, with completion targeted for the end of October 2025.

Road Accident Benefit Scheme (RABS) Bill Progress

Minister Creecy continues to push for the finalization of the Road Accident Benefit Scheme (RABS) Bill, which would introduce a no-fault system to replace the current fault-based approach. The proposed system aims to:

• Make it easier for road accident victims to access benefits
• Reduce costly legal bills
• Standardize benefit payments

However, the legal fraternity and other RAF stakeholders generally oppose the RABS Bill, preferring reforms to the current system.

Financial Challenges Continue

The RAF’s financial situation remains precarious:

• Current assets of R13.8 billion (including R2.1 billion in cash)
• R11.9 billion in fuel levy receivables
• R2.3 billion deficit reported in 2025
• Ongoing disputes with SARS over fuel levy deductions

Acting RAF CEO Phathutshedzo Lukhwareni maintains that despite the challenges, “the RAF maintains liquidity and can meet its obligations over the next 12 months.”

Industry Response and Stakeholder Meetings

The new interim board has engaged with various stakeholders, including attorney associations and sheriffs. Conrad van der Vyver from the Pretoria Attorneys Association described the meetings as showing “a clear meeting of the minds,” praising the new leadership’s transparency about existing problems.

Personal Injury Plaintiff Lawyers Association (Pipla) chair Advocate Justin Erasmus noted that the new interim board appears to be “trying to clear some of the mess created in the past by fund executives.”

Looking Ahead: October Implementation

The interim board has committed to presenting a clear implementation plan for processing backlogs and outstanding claims. Brown stated, “Our intention, once we have dotted all the ‘i’s’ and crossed all the ‘t’s’, is to start repayments aggressively from October onwards.”

What This Means for Claimants

For road accident victims and their legal representatives, these developments signal both hope and continued uncertainty:

Positive developments:

• New leadership committed to addressing backlogs
• Aggressive payment strategy planned for October 2025
• Settlement drives to fast-track ready claims
• System modernization initiatives

Ongoing challenges:

• Massive R19 billion claims backlog
• Technical insolvency of the fund
• Shortened payment timeframes due to High Court ruling
• Uncertainty around RABS Bill implementation

Conclusion

September 2025 marks a critical period for the Road Accident Fund as new leadership attempts to address decades of mismanagement and financial distress. While the challenges are enormous, the commitment shown by the interim board and the various initiatives being implemented offer some hope for improvement.

The success of these efforts will largely depend on the board’s ability to secure adequate funding, implement efficient systems, and maintain stakeholder confidence while navigating the complex legal and regulatory environment.

Road accident victims, legal practitioners, and other stakeholders will be watching closely as the RAF attempts to transform itself from a crisis-ridden organization into a functional provider of essential social security services.

Stay updated on the latest Road Accident Fund developments by following our regular coverage of this evolving story.