Road Accident Fund South Africa: Executive Turmoil and Reform Efforts Continue into 2026

The Road Accident Fund (RAF) in South Africa continues to face significant challenges as 2026 begins, with ongoing legal battles, executive suspensions, and ambitious reform plans dominating headlines. This comprehensive update covers the latest developments affecting one of South Africa’s most critical social security institutions.

Collins Letsoalo’s Legal Battles Continue to Haunt the RAF

Despite former CEO Collins Letsoalo’s departure from the Road Accident Fund several months ago, his controversial tenure continues to generate legal complications for the organization. The latest development involves former RAF senior IT advisor Mothusi Lukhele, who was dismissed in November 2021 after just three months on the job.

The Supreme Court of Appeal recently dismissed an application by Letsoalo and the RAF to overturn a court ruling that had suspended Lukhele’s dismissal. The court ruled that any order regarding Lukhele’s contract would have no practical effect since his contract ended in July 2025, making the dispute academic.

This case highlights the ongoing governance issues that plagued the RAF under Letsoalo’s leadership, including:

• Cyber-attacks that compromised the fund’s IT systems
• Questionable hiring practices and employment disputes
• Failure to follow proper due diligence procedures
• Ongoing legal costs from multiple court battles

Executive Suspensions Rock RAF Leadership

In a dramatic move that has raised eyebrows in Parliament, the RAF’s interim board suspended four senior executives in November 2025, including:

• Acting CEO Phathutshedzo Lukhwareni
• Chief Financial Officer Bernice Potgieter
• Chief Governance Officer Mampe Kumalo
• Head of the CEO’s office (name not publicly confirmed)

The suspensions were implemented to allow for “an independent and unhindered investigation into certain administrative and governance matters within the organisation,” according to the interim board. However, the timing has been questioned by the Portfolio Committee on Transport, as the suspensions occurred just before the board was due to present the RAF’s annual audit report to Parliament.

Parliamentary Scrutiny Intensifies

Portfolio Committee chairperson Donald Selamolela expressed concern about the timing and necessity of the suspensions, stating: “What makes the suspensions laughable is the fact that the interim board was unable to logically explain their decisions.”

The committee has warned that it will continue to scrutinise the board’s decisions and has called for the board to appear before Parliament to address outstanding matters related to the annual report and audit.

RAF’s Financial Crisis and Reform Plans

The Road Accident Fund faces a massive financial crisis, with liabilities potentially increasing by R300-400 billion. Despite these challenges, the fund paid out R45.6 billion to South Africans in recent periods, demonstrating its continued importance to road accident victims.

Key Reform Initiatives Include:

• Road Accident Benefits Scheme Bill: Being finalised for Cabinet submission to address long-standing issues
• Claims Backlog Clearance: Target to pay out more than R4 billion per month over eight months
• Community Outreach: Programs to reach far-flung areas unable to access RAF services
• Financial Sustainability: Introduction of defined benefits and annuity-based payments

Governance Improvements and New Leadership

Transport Minister Barbara Creecy dissolved the previous RAF board in July 2025, citing ongoing governance and operational failures. The new interim board, appointed in August 2025, is working to:

• Address supply chain management irregularities
• Implement proper consequence management
• Ensure compliance with Public Finance Management Act obligations
• Restore public trust in the institution

Office Relocation

As part of its operational changes, the RAF announced it is moving its head office from Centurion to Hatfield in Tshwane, effective January 5, 2026. All services will be available at the new location.

Impact on Road Accident Victims

Despite the administrative turmoil, the RAF continues to process claims and provide compensation to road accident victims. The fund is working to address a significant backlog, with some claims dating back eight years. Priority is being given to:

• Long-overdue claims in rural and remote areas
• Streamlining the claims process
• Improving communication with claimants
• Reducing processing times

Looking Ahead: What to Expect in 2026

As 2026 progresses, several key developments are expected:

• Appointment of a new permanent board
• Resolution of ongoing legal disputes
• Implementation of the Road Accident Benefits Scheme Bill
• Continued efforts to clear the claims backlog
• Strengthened governance and oversight mechanisms

Conclusion

The Road Accident Fund remains at a critical juncture as it works to overcome years of mismanagement and governance failures. While the recent executive suspensions and ongoing legal battles highlight the challenges ahead, the reform initiatives and new leadership provide hope for improved service delivery to South African road accident victims.

Stakeholders, including Parliament, civil society, and the legal profession, continue to monitor developments closely as the RAF works to restore its reputation and fulfill its mandate to provide appropriate compensation to road users injured in motor vehicle accidents.

Stay updated with the latest Road Accident Fund news and developments by following our regular coverage of South African legal and governance issues.