Road Accident Fund South Africa: Latest News and Developments December 2025

Road Accident Fund Under Scrutiny: Major Developments in December 2025

The Road Accident Fund (RAF) continues to dominate headlines in South Africa as December 2025 brings a series of significant developments that highlight ongoing challenges within the organization. From controversial procurement deals to court rulings and executive suspensions, the RAF remains under intense scrutiny from both the public and parliamentary oversight bodies.

Controversial R25 Million Call Centre Deal Raises Red Flags

One of the most significant stories emerging this month involves a dodgy call centre deal that has raised serious questions about procurement processes within the RAF. Documents obtained by investigative journalists reveal significant irregularities in the process that led to a contract with Alteram Solutions.

The controversy centers around a February 2023 memorandum that was hastily compiled and approved within 24 hours by senior RAF officials, including those in suspended CEO Collins Letsoalo’s office. The memorandum requested the RAF’s bid adjudication committee (BAC) to ratify participation in a Department of Employment and Labour contract with Alteram, despite the process not originating from the BAC as required by policy.

What makes this particularly concerning is that Collins Letsoalo had already written to the Department of Employment and Labour in November and December 2022 seeking permission to participate in the contract, suggesting that the decision to contract Alteram had been made months before the internal approval processes were initiated.

Executive Suspensions Rock RAF Leadership

The RAF has been further destabilized by the precautionary suspension of four senior executives in November 2025. Those suspended include:

• CFO Bernice Potgieter
• Acting CEO Phathu Lukhwareni
• Acting Chief Governance Officer Mampe Kumalo
• Head of Office in the CEO’s office, Mpho Manyasha

The suspensions have created a leadership vacuum at a critical time when the organization faces multiple investigations and parliamentary scrutiny. While the exact reasons for the suspensions haven’t been fully disclosed, they appear to be connected to various procurement irregularities and governance failures.

Court Rulings Expand RAF Liability Scope

In a significant legal development, the Western Cape High Court ruled that the RAF is liable for damages in an unusual case involving a farm worker who suffered an eye injury from a tree branch while traveling as a passenger on an open truck.

The case of Shereen Booysen vs. RAF established important precedent regarding the Fund’s liability when passengers are injured due to driver negligence, even in circumstances involving environmental hazards. The court found that driver Ricardo Baartman was negligent when he drove under low-hanging thorn branches, knowing that passengers on the exposed cargo bed could be injured.

This ruling potentially expands the scope of RAF liability and could influence future claims involving similar circumstances where driver awareness of hazards plays a crucial role in determining negligence.

Supreme Court Dismisses Judge’s Bid to Halt RAF-Related Prosecution

The Supreme Court of Appeal (SCA) has dismissed an application by Free State Judge Mpina Abednego Mathebula to halt his prosecution on charges related to alleged theft and money laundering of RAF funds.

The case dates back to Mathebula’s time as a practicing attorney when he allegedly misappropriated funds from a RAF settlement. The State claims that:

• A R2.2 million settlement plus costs was awarded to a child injured in a motor vehicle accident
• Additional interim payments of over R900,000 were made by the RAF
• Only R111,500 of the total R3,142,089 paid to the firm reached the complainant
• R1,329,092 allegedly remains unaccounted for

The SCA’s decision means that the criminal proceedings will continue, potentially setting an important precedent for accountability in RAF-related legal matters.

Parliamentary Oversight Intensifies

The Standing Committee on Public Accounts (SCOPA) has intensified its inquiry into RAF financial matters, with suspended CEO Collins Letsoalo and former board members facing increased scrutiny. Parliament has even sought prosecution powers for officials who fail to appear at hearings, demonstrating the seriousness with which oversight bodies are treating RAF governance issues.

Festive Season Safety Campaign

Despite the organizational turmoil, the RAF has maintained its public safety messaging, urging road users to exercise caution during the festive season. The organization released a statement on December 9, 2025, emphasizing the importance of avoiding road trauma during the holiday period.

Ongoing Challenges and Future Outlook

The RAF continues to face multiple challenges that threaten its ability to fulfill its mandate of providing compensation to road accident victims:

• Leadership instability due to executive suspensions
• Procurement irregularities that undermine public trust
• Legal challenges that could expand liability scope
• Parliamentary pressure for improved governance and accountability

Impact on Road Accident Victims

These developments have significant implications for road accident victims who depend on the RAF for compensation. The ongoing governance issues and leadership instability could potentially delay claim processing and affect the quality of service delivery to those who need it most.

What’s Next for the Road Accident Fund?

As 2025 draws to a close, the RAF faces a critical period that will likely determine its future direction. Key areas to watch include:

• Resolution of the executive suspensions and appointment of stable leadership
• Outcomes of ongoing parliamentary investigations
• Implementation of governance reforms to prevent future irregularities
• Court decisions in pending legal matters

The Road Accident Fund’s ability to navigate these challenges while maintaining its core function of supporting road accident victims will be crucial for restoring public confidence in this vital institution.

Conclusion

December 2025 has been a turbulent month for the Road Accident Fund, with multiple scandals and legal developments highlighting systemic issues within the organization. While the RAF continues to face significant challenges, the increased scrutiny from parliament, the judiciary, and the media may ultimately lead to much-needed reforms that strengthen governance and improve service delivery to road accident victims across South Africa.

As these stories continue to develop, stakeholders will be watching closely to see whether the RAF can overcome its current difficulties and fulfill its mandate effectively in the years ahead.