Road Accident Fund Resumes R20 Billion Claims Payment Drive Amid Corruption Probe – September 2025 Update

RAF Accelerates Payment of Outstanding Claims Worth R20 Billion

The Road Accident Fund (RAF) has announced a major breakthrough in addressing its massive backlog of outstanding claims, with the fund resuming payments for hundreds of claims older than 180 days. This development comes as South Africa’s beleaguered compensation scheme faces intense scrutiny over alleged corruption and financial mismanagement.

Key Developments in September 2025

According to recent reports, the RAF has already disbursed R3.3 billion in outstanding claims over the past three weeks, representing a significant acceleration in payment processing. The fund estimates that claims older than 180 days total more than R20 billion, highlighting the massive scale of the backlog that has left thousands of accident victims waiting for compensation.

New Board Leadership Drives Reform

The payment acceleration follows the appointment of a new RAF board in August 2025, led by interim chairperson Kenneth Brown, a former Treasury official. This new leadership has implemented several key reforms:

• Priority processing for claims older than 180 days
• Monthly payment targets of over R4 billion
• Bi-monthly public reports on payment progress
• Enhanced documentation review processes to prevent delays

Parliamentary Inquiry Investigates Corruption Allegations

While the RAF works to clear its backlog, Parliament’s Standing Committee on Public Accounts (SCOPA) has launched a comprehensive inquiry into allegations of corruption and financial mismanagement at the fund. The investigation, led by SCOPA chairperson Songezo Zibi, will examine several serious concerns:

Areas Under Investigation

Judicial Corruption Allegations: SCOPA is investigating claims of possible collusion between judges and lawyers in RAF cases, with the committee requesting specific documentation about suspected instances of corruption.

Double Payment Issues: The inquiry has uncovered evidence of double payments affecting not only lawyers but also medical experts, with some payments mistakenly going to unrelated parties.

Legal Fee Irregularities: The investigation will examine how certain law firms have received disproportionate shares of the RAF’s R103 million annual legal services budget.

Whistleblower Protection Concerns

SCOPA chairperson Zibi has revealed that he has increased his personal security following a threat assessment that showed he was being followed and photographed. This development highlights the serious nature of the allegations and the risks faced by those investigating RAF corruption.

“There are people who feel extremely afraid. These are people who are former employees of the RAF,” Zibi stated, emphasizing the need for better whistleblower protection.

Impact on Road Accident Victims

The RAF’s payment acceleration represents hope for thousands of South Africans who have been waiting years for compensation following road accidents. The fund, which is financed through fuel levies, provides crucial support for:

• Medical expenses for accident victims
• Loss of income compensation
• General damages for pain and suffering
• Support for dependents of deceased victims

Settlement Drive Initiatives

The RAF has also announced regional settlement drives, including a recent initiative by the Pretoria Regional Office targeting fully prepared claims. These block settlement events aim to process multiple claims efficiently and reduce administrative delays.

Financial Challenges and Reform Efforts

The RAF’s financial challenges extend beyond the R20 billion backlog. The fund faces ongoing sustainability issues due to:

• Rising claim volumes as South Africa’s road accident rates remain high
• Increasing medical costs and compensation amounts
• Administrative inefficiencies that have contributed to payment delays
• Alleged fraudulent activities that have drained resources

Government Response

Transport Minister Barbara Creecy dissolved the previous RAF board in July 2025, paving the way for the current reform efforts. The new board’s mandate includes:

• Clearing the claims backlog
• Implementing transparent reporting mechanisms
• Cooperating with parliamentary investigations
• Strengthening internal controls and governance

Looking Ahead: What This Means for Claimants

For current and potential RAF claimants, these developments signal both opportunity and continued challenges:

Positive Developments

• Faster processing of older claims
• Increased transparency through regular public reporting
• Improved governance under new board leadership
• Parliamentary oversight ensuring accountability

Ongoing Challenges

• Massive backlog will take time to clear completely
• Corruption investigations may reveal additional systemic issues
• Sustainability concerns about long-term funding
• Complex legal processes that can still cause delays

Conclusion

The Road Accident Fund’s recent payment acceleration represents a significant step forward in addressing years of delays and frustration for accident victims. However, the ongoing corruption investigation highlights the need for continued reform and oversight to ensure the fund serves its intended purpose effectively.

As the SCOPA inquiry progresses and the new RAF board continues its reform efforts, stakeholders will be watching closely to see whether these positive developments can be sustained and whether the fund can regain public trust while fulfilling its critical mandate to support road accident victims across South Africa.

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