Road Accident Fund (RAF) South Africa: Key News & Updates – April 2026

The Road Accident Fund (RAF) continues to dominate South African headlines in 2026, with a series of landmark court rulings, mounting financial pressures, and ongoing governance reforms shaping the future of this critical state entity. Here is a comprehensive roundup of the most important RAF developments as of April 2026.

1. Landmark SCA Ruling: Undocumented Foreigners Must Be Compensated

In one of the most significant legal developments of the year, the Supreme Court of Appeal (SCA) ruled on 17 April 2026 that the Road Accident Fund must compensate all road accident victims — including undocumented foreign nationals — finding that the phrase “any person” in the RAF Act includes everyone, regardless of immigration status.

The ruling dismissed the RAF’s appeal against an earlier Gauteng High Court judgment that had struck down a RAF directive requiring foreign nationals to prove legal presence in South Africa at the time of injury. A full bench led by Judge Norman Davis had previously found that “these accidents don’t discriminate in respect of the victims thereof between race, gender, age or between illegal foreigners and citizens of this country.”

The SCA confirmed that neither the Transport Minister nor the RAF is permitted to amend or limit the scope of the RAF Act through policy decisions or novel interpretations. The appeal was dismissed with costs.

Following this ruling, the Portfolio Committee on Transport called for the expedited reform of the RAF Act to address the implications of the judgment and close legislative loopholes.

2. RAF Dealt Twin Blows by the SCA: Post-Judgment Interest and Hospital Debt

In late March 2026, the SCA handed the RAF two further resounding defeats on the same day, deepening the fund’s institutional crisis.

Post-Judgment Interest Is Automatic

In the matter of RAF vs Sheriff of the High Court, Pretoria East and Others, the SCA ruled unanimously that the RAF is obliged to pay interest on late judgment debts automatically — even when the original court order is silent on the subject. Justice Keoagile Elias Matojane confirmed that under section 2(1) of the Prescribed Rate of Interest Act, every judgment debt bears interest from the day it becomes payable as a matter of law. In RAF matters, this clock starts ticking 14 days after the court order is handed down.

Sunshine Hospital Debt Enforced

In the second matter, Newnet Property (Pty) Ltd t/a Sunshine Hospital vs The Road Accident Fund, the SCA reversed a Pretoria High Court ruling and ordered the RAF to pay Sunshine Hospital more than R92 million. The hospital had accumulated a mountain of unpaid invoices after the RAF stopped paying in March 2020. The SCA went further, directing the RAF’s acting CEO, Radikwena Phora, by name to ensure compliance — a mandamus reflecting the court’s dwindling patience with institutional non-compliance.

3. RAF Ordered to Pay 209 Victims R47 Million in 30 Days

On 2 April 2026, the Klerksdorp Regional Court compelled the RAF to comply with all valid and existing court orders in favour of 209 road accident victims and to pay them a combined total of more than R47.3 million within 30 days. The court warned that non-compliance could result in contempt of court proceedings.

The RAF had argued it could not process payments because certain claims were “not registered” on its internal administrative system. The court rejected this defence, with Magistrate MB Mamana ruling that “internal administrative errors, omissions or system issues with the RAF cannot override valid court orders” and that the fund’s conduct “reflects a systemic failure to discharge its obligations.”

4. The R400–R500 Billion Debt Crisis: South Africa’s Next Big SOE Disaster?

Analysts and parliamentarians have raised the alarm about the RAF’s catastrophic financial position. According to the National Treasury’s 2026 Budget Review, the RAF’s long-term provisions are expected to rise from R387 billion in the current financial year to R426 billion by 2028/29. Some estimates place total contingent liabilities as high as R500 billion.

Key financial facts include:

• The RAF receives approximately R50 billion per year from fuel levies.
• Overheads consume around R7 billion, leaving roughly R43 billion for claims payouts.
• The fund has more than 440,000 outstanding claims, some dating back over a decade.
• The value per claim has increased by 70%, and legal fees per claim have quadrupled.
• The RAF’s fuel levy was raised to R2.25 per litre from 1 April 2026 — up from 41.5 cents per litre in 2008 — but this remains far short of what is needed.

Scopa (Standing Committee on Public Accounts) chairperson Songezo Zibi described the RAF as “technically insolvent,” warning: “You have layer on layer of problems. The fiscus can’t deal with that.”

Zibi noted that legal opinions are being sought on how to cap payouts for future loss of income and medical expenses, and to move from lump-sum payments to staggered disbursements. However, new legislation is unlikely to come into effect before 2027.

5. Governance Reforms and the Letsoalo Legacy

Much of the RAF’s current crisis is attributed to the tenure of former CEO Collins Letsoalo (2020–2025), who earned R6 million per year plus a 40% performance bonus despite the fund receiving disclaimed or adverse audit opinions for five consecutive years.

Key governance failures under Letsoalo’s watch include:

• The Special Investigation Unit (SIU) uncovered RAF bank accounts with between R1 million and R100 million.
• A 200-bed Johannesburg hospital was closed in May 2025 after the RAF failed to pay more than R300 million in outstanding debt.
• Allegations of procurement manipulation, invoice splitting, and VIP treatment from service providers.
• A lavish R4 million staff party, including R40,000 spent on executive drinks.
• The RAF accumulated more than R15 billion in default judgments.
• The fund litigated against the Auditor-General for two years.

Letsoalo was placed on special leave in May 2025 and his contract ended in August 2025. Transport Minister Barbara Creecy dissolved the entire RAF board in July 2025 and appointed an interim board. She also wrote to President Cyril Ramaphosa requesting an expanded SIU investigation. ActionSA MP Alan Beesley has called for criminal charges against Letsoalo, describing him as a “sociopathic CEO.”

6. Signs of Recovery? Parliament Cautiously Optimistic

Despite the dire picture, the Chairperson of the Portfolio Committee on Transport, Mr Donald Selamolela, stated in February 2026 that the RAF is “on the road to recovery,” noting that governance improvements and operational stabilisation are underway.

“We are satisfied that indeed there is work happening to improve governance and stabilise the operation of RAF,” Selamolela said. Deputy Minister of Transport Mkhuleko Hlengwa likened the reform process to “fixing an aeroplane while airborne.”

The RAF also hosted a Settlement Drive at Ngwelezane Hospital in February 2026 as part of efforts to reduce the backlog of outstanding claims.

7. Court Backlogs and Access to Justice Concerns

Personal injury lawyers have raised serious concerns about access to justice for road accident victims. In Gauteng, a directive making mediation mandatory for all civil trials — intended to reduce court backlogs — has been blamed for worsening delays. Advocate Justin Erasmus, chair of the Personal Injury Plaintiff Lawyers Association, has lodged a High Court application to set aside the directive, with the matter coming to court in June 2026.

Erasmus noted that Gauteng courts deal with approximately 300 RAF matters per week, each taking about a day, with only 25 state attorneys available. Trial dates in some courts are reportedly being set as far out as November 2033.

What Does This Mean for RAF Claimants?

If you have a pending RAF claim or are considering lodging one, here is what the current landscape means for you:

• All road accident victims — including foreign nationals — are entitled to claim compensation under the RAF Act.
• Court orders must be complied with: the RAF cannot use internal administrative issues to delay payment.
• Post-judgment interest accrues automatically if the RAF delays payment beyond 14 days of a court order.
• Delays remain significant, and claimants should work with experienced personal injury attorneys to navigate the process.
• Legislative reforms are on the horizon that may change how compensation is calculated and paid.

Conclusion

The Road Accident Fund remains one of South Africa’s most complex and contested state entities. While courts continue to uphold the rights of accident victims and hold the RAF accountable, the fund’s financial sustainability is under severe strain. Meaningful reform — both legislative and administrative — is urgently needed to ensure that the hundreds of thousands of South Africans who depend on the RAF for compensation can access justice without years of delay.

Stay informed and bookmark this page for daily updates on the Road Accident Fund in South Africa.

Sources: IOL Business, Daily Maverick, Currency News, Moneyweb, Africa24TV, RAF Media Statements (April 2026)