Road Accident Fund News Update: Major Developments in South Africa’s RAF System – October 2025

Breaking: RAF Pays R3.3 Billion in Outstanding Claims

In a significant development for South Africa’s Road Accident Fund (RAF), the organization has disbursed R3.3 billion in outstanding claims over the past two weeks, marking a crucial step toward addressing the massive backlog that has plagued the system for years.

The new interim RAF board, led by Kenneth Brown, announced this milestone payment as part of their commitment to restore dignity to the Road Accident Fund and provide relief to thousands of claimants who have been waiting for compensation.

Foreign Nationals Receive R546 Million in RAF Claims

A controversial revelation emerged this week when Acting Transport Minister Kgosientsho Ramokgopa disclosed that South African taxpayers paid R546 million to foreign nationals through RAF claims during the 2024/25 financial year.

Key statistics from the disclosure:

• Total RAF payments: R42.94 billion across 128,716 claims
• Foreign national payments: R548 million
• Number of foreign claims registered: 222
• Successfully settled foreign claims: Only 17 out of 222

ActionSA MP Alan Beesley raised concerns about taxpayers funding medical expenses for foreigners, questioning the legitimacy of these claims and calling for legislative reforms to address this issue.

Legal Victory: Fidelity Fund Ordered to Pay Stolen RAF Payout

In a landmark court case, the Legal Practitioners Fidelity Fund was ordered by the High Court in Pretoria to compensate a 54-year-old widow whose RAF settlement was stolen by her attorneys.

The case highlights the widespread corruption within the legal system surrounding RAF claims:

• Chueu Inc Attorneys handled 6,000 files worth R6.2 billion before its collapse
• 116 claims against the firm totaling R82.7 million
• The firm owes the Legal Practice Council R29 million

This victory provides hope for other victims of attorney fraud and demonstrates the importance of the fidelity fund in protecting vulnerable claimants.

RAF Board Dissolution and New Leadership

Transport Minister Barbara Creecy dissolved the previous RAF board in July 2025, appointing an interim board to address the governance crisis. The new leadership has implemented several key reforms:

Immediate Actions Taken:

• Comprehensive review of all claims outstanding beyond 180 days
• Monthly payments expected to exceed R4 billion
• Strengthened monitoring systems for accountability
• Bi-monthly reports to attorneys and suppliers
• Direct engagement protocols for dispute resolution

The Scale of RAF’s Financial Challenge

The Road Accident Fund faces significant financial pressures:

• Outstanding claims backlog: Estimated at over R20 billion
• Total claims liability: R40.4 billion
• Unpaid claims at year-end: R10.4 billion
• Recent payments: R3.3 billion in two weeks

Legislative Reforms on the Horizon

The Department of Transport is finalizing the Road Accident Benefit Scheme Bill, which promises to revolutionize the system by:

• Introducing a no-fault system
• Reducing legal costs for claimants
• Addressing claims by foreign nationals
• Requiring tourists to obtain insurance
• Ensuring long-term financial sustainability

Deputy Minister Mkhuleko Hlengwa confirmed the bill is awaiting Cabinet consultation and is expected to move forward as part of comprehensive RAF reforms.

Impact on South African Road Users

These developments have significant implications for all South African road users:

Positive Changes:

• Faster claim processing and payments
• Improved transparency and accountability
• Better protection against attorney fraud
• Streamlined claims procedures

Ongoing Challenges:

• Massive backlog still requires attention
• Financial sustainability concerns
• Need for comprehensive system overhaul
• Prevention of future corruption

What This Means for RAF Claimants

If you have an outstanding RAF claim, these recent developments offer hope:

1. Priority Processing: Claims older than 180 days are being prioritized
2. Regular Updates: Bi-monthly reports will provide transparency on progress
3. Direct Communication: Regional managers are available for specific queries
4. Legal Protection: Enhanced safeguards against attorney fraud

Looking Ahead: RAF’s Future

The interim board’s aggressive approach to clearing the backlog, combined with pending legislative reforms, suggests a more efficient and transparent RAF system is on the horizon. However, the success of these initiatives will depend on:

• Sustained political commitment
• Adequate funding mechanisms
• Effective implementation of new systems
• Continued oversight and accountability

Conclusion

The Road Accident Fund is undergoing its most significant transformation in years. While challenges remain substantial, the recent R3.3 billion payout and comprehensive reforms signal a genuine commitment to serving South African road accident victims more effectively.

For the latest updates on RAF developments, continue following our coverage as this important story unfolds.

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