Road Accident Fund South Africa: Major Developments in 2025

The Road Accident Fund (RAF) in South Africa has been making headlines throughout 2025 with significant governance changes, new settlement initiatives, and increased parliamentary oversight. This comprehensive update covers the latest developments affecting road accident victims and legal practitioners across the country.

Minister Barbara Creecy Dissolves RAF Board – A Historic Decision

In a unprecedented move on July 15, 2025, Transport Minister Barbara Creecy dissolved the entire Board of Directors of the Road Accident Fund. This dramatic action followed persistent governance and operational challenges that significantly undermined the RAF’s ability to discharge its statutory mandate.

Key Governance Issues That Led to Board Dissolution

The Minister identified several critical governance failures that necessitated this drastic intervention:

• Costly Litigation: Protracted and expensive litigation on accounting standards applications, straining the entity’s financial resources
• CEO Suspension Mishandling: Inconsistent and reckless handling of the Chief Executive Officer’s suspension, leading to legal challenges and institutional uncertainty
• Default Judgments: Frequent incurrence of default judgments against the RAF, exacerbating contingent liabilities
• Board Division: Deep divisions within the Board, with most resolutions passed through casting votes rather than consensus
• Critical Position Vacancies: Failure to fill essential executive positions including Chief Claims Officer and Head of Legal

Minister’s Intervention Strategy

Following the board dissolution, Minister Creecy implemented a comprehensive intervention plan:

• Requested National Treasury to appoint an interim Accounting Authority under Section 49(3) of the PFMA
• Initiated a transparent recruitment process for a new Board
• Established an Expert Advisory Committee to review RAF’s business processes
• Requested SIU to expand investigation scope under Proclamation 44 of 2024

RAF Settlement Drive Initiative: Reducing Claims Backlog

In August 2025, the Road Accident Fund launched a national initiative aimed at reducing the backlog of claims ready for settlement. This ongoing program began with the Pretoria Region from August 6-8, 2025.

Settlement Drive Details

The settlement drive operates under specific parameters:

• Participation Limit: Law firms can submit a maximum of 10 qualifying claims per firm
• Required Information: Link Number, Claim Number, Claimant’s Full Name, Claimant’s Attorney, and Attorney’s Vendor Reference Number
• Processing Method: First-come, first-served basis
• Eligibility: Only claims lodged with regional offices and fully prepared for settlement
• Exclusions: Claims dismissed or rejected by courts are not eligible

RAF Acting CEO Phathutshedzo Lukhwareni emphasized the Fund’s commitment to reducing settlement processing times while maintaining compassionate, efficient, and accessible service to all claimants.

Parliamentary Inquiry: SCOPA Investigation into RAF Financial Matters

On July 1, 2025, the Standing Committee on Public Accounts (SCOPA) adopted terms of reference for a comprehensive inquiry into evidence of maladministration, financial impropriety, and misuse of public funds at the RAF.

Inquiry Scope and Timeline

The parliamentary investigation covers seven main areas:

1. Governance failures and ministerial/board oversight
2. Financial management and PFMA compliance
3. Procurement and supply chain management irregularities
4. Legal and litigation expenditure
5. Fraud, corruption, and whistle-blower reports
6. Automation and claims processing
7. Governance and human resource matters

The inquiry focuses on the 2020/21 to 2024/25 financial years, with SCOPA aiming to begin hearings in mid-September 2025 and complete the investigation by end of October 2025.

Witness Testimony and Public Participation

SCOPA will call various witnesses including:

• Current and former RAF Board members
• RAF executives
• Whistleblowers
• Expert witnesses
• Directly affected stakeholders

All hearings will be open and broadcast on Parliament TV and social media, ensuring transparency and public participation in the process.

Road Accident Benefit Scheme Bill: Future Reforms

Minister Creecy has emphasized her department’s commitment to finalizing the Road Accident Benefit Scheme Bill, which will introduce a no-fault system. This reform aims to make it easier for road accident victims to access benefits without costly legal bills.

Impact on Road Accident Victims and Legal Practitioners

These developments have significant implications for:

Road Accident Victims

• Potential faster claim processing through settlement drives
• Improved governance may lead to more efficient service delivery
• Future no-fault system could simplify benefit access

Legal Practitioners

• Opportunities to participate in settlement drives for faster claim resolution
• Need to stay updated on changing RAF procedures and policies
• Potential changes in legal fee structures under proposed reforms

Looking Ahead: What to Expect

As South Africa moves through the remainder of 2025, several key developments are expected:

• Appointment of new RAF Board members through transparent recruitment
• Completion of SCOPA parliamentary inquiry with potential recommendations
• Expansion of settlement drives to other regions nationwide
• Progress on Road Accident Benefit Scheme Bill legislation
• Implementation of Expert Advisory Committee recommendations

Conclusion

The Road Accident Fund’s transformation in 2025 represents a critical juncture for South Africa’s road accident compensation system. With Minister Creecy’s decisive intervention, parliamentary oversight, and new settlement initiatives, there is cautious optimism for improved service delivery to road accident victims.

Stakeholders including legal practitioners, road accident victims, and their families should stay informed about these ongoing developments as they may significantly impact claim processing times, procedures, and overall access to compensation.

Stay updated with the latest RAF news and developments by following official government communications and parliamentary proceedings. For specific claim inquiries, contact your regional RAF office or legal representative.