Road Accident Fund Makes Major Progress: R3.3 Billion Paid to Claimants Amid Ongoing Reforms – September 2025 Update

RAF Delivers on Promise: R3.3 Billion Disbursed in Two Weeks

In a significant development for South African road accident victims, the Road Accident Fund (RAF) has successfully paid out R3.3 billion in outstanding claims over the past two weeks, marking what the new interim board describes as “the first step towards restoring the dignity of the Road Accident Fund.”

This substantial payment represents progress against the estimated R20 billion in claims outstanding for more than 180 days, offering hope to thousands of claimants who have been waiting years for compensation.

New Leadership Brings Fresh Approach

The payments follow the appointment of a new interim RAF board in August 2025, led by Kenneth Brown, a seasoned financial expert with nearly 20 years of experience at National Treasury and current board member of the Development Bank of Southern Africa (DBSA).

Minister of Transport Barbara Creecy dissolved the previous RAF board in July 2025, citing the urgent need to close the governance vacuum that had plagued the organization. The new interim board has committed to:

• Paying more than R4 billion monthly throughout the year
• Prioritizing claims older than 180 days
• Implementing strengthened monitoring systems
• Providing bi-monthly progress reports to stakeholders

Addressing the Claims Backlog Crisis

The RAF’s financial challenges have been mounting, with R10.4 billion in unpaid claims at the end of the financial year to March 31, 2025, and a total claims liability of R40.4 billion. However, the organization maintains it can meet its obligations over the next 12 months.

The crisis deepened when the High Court in Pretoria struck down the RAF’s application for a 180-day moratorium on claim payments in September 2025, forcing the fund to pay claims within 14 calendar days instead of almost six months.

Key Statistics:

• R3.3 billion paid in the past two weeks
• R20 billion estimated total outstanding claims over 180 days
• R4 billion+ monthly payments planned going forward
• R40.4 billion total claims liability

Parliamentary Investigation Underway

Alongside the payment drive, the RAF faces scrutiny from Parliament’s Standing Committee on Public Accounts (SCOPA), which is conducting an investigation into alleged corruption within the system. The inquiry is examining:

• Alleged corruption between judges and lawyers
• Maladministration and mismanagement
• Systemic issues affecting claim processing
• Collusion between various stakeholders

SCOPA chairperson Songezo Zibi has confirmed that the investigation aims to uncover all forms of wrongdoing to ensure meaningful reform.

Modernization and Future Reforms

The new interim board is looking beyond immediate crisis management, with plans to modernize the entire RAF claims system. Brown has indicated that the board is prepared to make tough decisions, stating: “We can’t have people who are being paid big money and they are just not doing their work.”

Planned Improvements Include:

• Embedded controls for prompt document review
• Enhanced monitoring systems for transparency
• Direct engagement protocols for dispute resolution
• Sustainable claims management systems
• Regular stakeholder communication

Impact on Claimants and Legal Practitioners

The interim board has acknowledged the “financial and emotional strain that delayed payments have caused claimants and their families” and has committed to resolving the situation “with urgency and transparency.”

For legal practitioners representing RAF claimants, the new approach includes:

• Direct contact with regional managers for specific issues
• Bi-monthly progress reports
• Streamlined dispute resolution processes
• Collaborative approach to avoid unnecessary delays

Looking Ahead: Sustainability and Accountability

The RAF’s turnaround program aims to tackle systemic delays and restore confidence in the fund’s claims environment. With the organization receiving approximately R4 billion monthly from petrol levy collections, totaling around R48 billion annually, there are questions about how the backlog accumulated despite substantial income.

The success of the current initiative will be measured by:

• Consistent monthly payments of R4+ billion
• Reduction in claims older than 180 days
• Implementation of sustainable systems
• Transparency in reporting and accountability

Conclusion

The Road Accident Fund’s recent R3.3 billion payment represents a significant step forward in addressing years of delayed compensation for road accident victims. Under new leadership and with parliamentary oversight, the RAF appears committed to systemic reform and sustainable operations.

However, with R20 billion still outstanding and ongoing corruption investigations, the true test of the RAF’s transformation will be its ability to maintain consistent payments while implementing lasting reforms that prevent future backlogs.

For claimants and their legal representatives, the current developments offer cautious optimism that the RAF may finally be on a path toward fulfilling its mandate of providing timely compensation to road accident victims across South Africa.

Stay updated with the latest RAF developments and claim processing news by following our regular coverage of South Africa’s Road Accident Fund reforms and payment progress.