Road Accident Fund Undergoes Historic Transformation in 2025

The Road Accident Fund (RAF) in South Africa has experienced unprecedented changes in 2025, with Transport Minister Barbara Creecy implementing sweeping governance reforms to address long-standing operational challenges. These developments significantly impact road accident victims, legal practitioners, and the broader South African public who depend on RAF services.

Minister Dissolves RAF Board Due to Governance Failures

On July 15, 2025, Transport Minister Barbara Creecy made the historic decision to dissolve the entire Board of Directors of the Road Accident Fund. This drastic action followed mounting governance and operational challenges that severely undermined the RAF’s ability to fulfill its statutory mandate.

Key Issues Leading to Board Dissolution:

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

New Interim Board Appointed to Restore Stability

Following the dissolution, Minister Creecy announced the appointment of an Interim Board on August 8, 2025, approved by Cabinet for a six-month period or until a permanent board is established.

Interim Board Leadership:

• Chairperson: Kenneth Brown
• Vice-Chairperson: Nonhlanhla Mabusela-Aikhuere
• Board Members: Ntswaki Kutumela, Innocentia Mmule Pule, Richard Dyantyi, Mpontshane Alfred Mkhipheni, Alfredina (Ntina) Themba, and Neeshan Balton

Interim Board Mandate:

The new interim board has been tasked with several critical responsibilities:

• Providing strategic direction to enable the RAF to deliver on its mandate
• Ensuring financial and governance stability
• Addressing deficiencies in governance and control systems
• Reducing frequent default judgments against the RAF
• Filling critical executive positions
• Cooperating with current and future SIU investigations

RAF Launches National Settlement Drive Initiative

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

Settlement Drive Details:

• Participation Limit: Law firms can submit a maximum of 10 qualifying claims
• Submission Requirements: Link Number, Claim Number, Claimant’s Full Name, Claimant’s Attorney, and Attorney’s Vendor Reference Number
• Processing: First-come, first-served basis for fully prepared claims
• Exclusions: Court-dismissed or rejected claims are not eligible

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

Road Accident Benefit Scheme Bill Progress

Minister Creecy has reiterated the department’s commitment to finalizing the Road Accident Benefit Scheme Bill, which aims to introduce a no-fault system. This proposed legislation would:

• Make it easier for road accident victims to access benefits
• Eliminate costly legal bills for claimants
• Provide expanded access to benefits for all road users
• Create a comprehensive social security scheme

Parliamentary Oversight and SIU Investigation

The Standing Committee on Public Accounts (SCOPA) has resolved to launch an inquiry into RAF financial matters, with terms of reference approved on July 1, 2025. The inquiry will take place after the August recess.

Additionally, a request has been made to the Special Investigating Unit (SIU) to expand the scope of their current investigation under Proclamation 44 of 2024 to cover recent events.

Impact on Road Accident Victims and Legal Practitioners

These developments represent significant changes for stakeholders in the RAF ecosystem:

For Road Accident Victims:

• Potential for faster claim processing through settlement drives
• Improved governance may lead to more efficient service delivery
• Future no-fault system could simplify the claims process
• Better oversight and accountability measures

For Legal Practitioners:

• Opportunities to participate in block settlement initiatives
• Potential changes in legal processes with the new benefit scheme
• Need to stay updated on evolving RAF procedures
• Improved communication channels with RAF management

Youth Road Safety Concerns

The RAF has highlighted alarming statistics regarding youth involvement in road accidents. According to recent media releases, the Fund is recording a staggering number of youth deaths and personal injury claims, prompting calls for increased road safety awareness and responsible driving behavior.

Financial Challenges and Recovery Efforts

The RAF has faced significant financial challenges, including disputes with SARS and payment delays to claimants and suppliers. However, the High Court granted the RAF an urgent interim interdict against SARS in March 2025, providing some relief in their financial disputes.

Looking Forward: RAF Transformation

The Road Accident Fund’s governance overhaul represents a critical turning point for the organization. With new leadership, expert advisory support, and ongoing investigations, the RAF is positioned to address long-standing challenges and improve service delivery to road accident victims across South Africa.

The success of these initiatives will be closely monitored by stakeholders, including legal practitioners, road accident victims, and the broader South African public who depend on the RAF’s services.

Key Takeaways for 2025

• The RAF board dissolution marks a significant governance intervention
• New interim leadership brings fresh perspective and stability
• Settlement drive initiatives offer hope for reducing claim backlogs
• The proposed no-fault system could revolutionize road accident compensation
• Ongoing investigations may reveal further areas for improvement
• Parliamentary oversight ensures continued accountability
• Youth road safety remains a critical concern requiring urgent attention

What This Means for You

If you’re a road accident victim with a pending RAF claim, these developments could mean:

• Faster processing times through settlement drives
• Improved communication from RAF offices
• Better governance and accountability
• Potential for more streamlined processes in the future

For legal practitioners, staying informed about these changes is crucial for effectively representing clients and navigating the evolving RAF landscape.

Stay updated with the latest Road Accident Fund developments as these transformative changes continue to unfold throughout 2025. The RAF’s commitment to reform and improved service delivery offers hope for better outcomes for all road accident victims in South Africa.