Road Accident Fund Major Breakthrough: R20 Billion Claims Clearance Initiative Underway in 2025

RAF Announces Comprehensive R20 Billion Claims Settlement Drive

The Road Accident Fund (RAF) has made significant strides in addressing its longstanding claims backlog crisis, announcing a comprehensive initiative to clear over R20 billion in outstanding claims that have been pending for more than 180 days. This groundbreaking development marks a turning point for thousands of claimants who have been waiting for compensation.

Immediate Progress: R3.3 Billion Already Disbursed

In a remarkable display of efficiency, the RAF has already disbursed R3.3 billion in just two weeks as part of this accelerated payment program. The fund anticipates maintaining monthly payments exceeding R4 billion throughout 2025, representing the most aggressive claims settlement approach in the organization’s history.

This initiative directly addresses the financial and emotional toll that payment delays have inflicted on accident victims and their families across South Africa. The RAF Board has prioritized settlements based on a meticulous review of all claims outstanding for over 180 days.

Leadership Overhaul: New Interim Board Takes Charge

Minister Creecy Dissolves Previous Board

Transport Minister Barbara Creecy dissolved the previous RAF board in July 2025 due to persistent governance and operational challenges that significantly undermined the fund’s ability to discharge its statutory mandate. The dissolution was necessary to address the board’s failure to act in the best interests of the entity and fulfill its fiduciary duties.

Interim Board Appointments

Cabinet approved the appointment of a new interim board for a six-month period, led by:

• Kenneth Brown – Interim Board Chairperson
• Nonhlanhla Mabusela-Aikhuere – Vice-Chairperson
• Ntswaki Kutumela
• Innocentia Mmule Pule
• Richard Dyantyi
• Mpontshane Alfred Mkhipheni
• Alfredina (Ntina) Themba
• Neeshan Balton

Enhanced Transparency and Accountability Measures

Bi-Monthly Reporting System

The RAF has implemented enhanced monitoring systems to track both disbursed and outstanding claims, ensuring compliance, accountability, and transparency. Bi-monthly reports will be issued to Plaintiff Attorneys and suppliers, with public accessibility to reinforce the Fund’s commitment to transparency.

Streamlined Administrative Processes

The board has taken extensive measures to ensure supportive documentation is reviewed promptly, mitigating administrative delays that have historically plagued the claims process. Contact details for specific Regional Managers have been communicated to all Plaintiff Attorneys and Suppliers to facilitate efficient resolution of outstanding issues.

Parliamentary Oversight and Investigation

SCOPA Inquiry Launched

The Standing Committee on Public Accounts (SCOPA) has adopted terms of reference for a comprehensive 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.

This parliamentary oversight ensures that all aspects of RAF’s financial management and governance challenges are thoroughly investigated and addressed.

Future Reforms: Road Accident Benefit Scheme Bill

Comprehensive System Overhaul

The Department of Transport continues pursuing measures to restore institutional stability through the Road Accident Benefit Scheme Bill. This proposed legislation aims to overhaul the current RAF system by introducing a no-fault based comprehensive social security scheme that would expand access to benefits for all road users.

Sustainable Operational Model

A panel of independent experts has been established to advise on developing a sustainable RAF operational and governance model. This panel will review business processes and propose actionable recommendations to prevent future governance crises.

Impact on Claimants and Legal Representatives

Settlement Drive Initiatives

The RAF has introduced targeted settlement drives, including block settlement initiatives in regional offices. These drives require law firms to submit up to 10 prepared claims to ensure swift processing and payment.

Addressing Non-Compliant Claims

Recognizing that disputes and uncertainties may exist regarding some claims, particularly non-compliant ones, the RAF has instituted specific protocols to resolve such matters efficiently while maintaining the integrity of the claims process.

Looking Ahead: Sustainable Claims Management

The RAF’s comprehensive approach aims to not only resolve present challenges but also establish a reliable claim management system for the future. The consistent flow of payments is expected to significantly alleviate the claims backlog in the coming months, restoring confidence in South Africa’s road accident compensation system.

This transformation represents the most significant reform of the Road Accident Fund in recent years, offering hope to thousands of claimants who have been waiting for compensation. The combination of immediate financial relief, governance reforms, and long-term structural changes positions the RAF for sustainable operations moving forward.

Key Takeaways for Stakeholders

• Over R20 billion in outstanding claims being actively processed
• R3.3 billion already disbursed in first two weeks
• Monthly payments exceeding R4 billion planned throughout 2025
• New interim board providing strategic direction
• Enhanced transparency through bi-monthly public reporting
• Parliamentary oversight ensuring accountability
• Long-term reforms through proposed new legislation

The Road Accident Fund’s transformation demonstrates South Africa’s commitment to ensuring that road accident victims receive timely and appropriate compensation while establishing sustainable governance structures for the future.