Road Accident Fund Under Fire: Latest Developments in South Africa’s Controversial Claims System – December 2025

Executive Summary

South Africa’s Road Accident Fund (RAF) continues to dominate headlines in December 2025, with a series of damaging revelations about governance failures, questionable procurement deals, and ongoing legal battles. This comprehensive update examines the latest developments affecting the state-owned entity responsible for compensating road accident victims.

Major Developments This Month

1. Controversial R25 Million Call Centre Deal Exposed

Investigative reporting has revealed significant irregularities in the RAF’s procurement of a call centre contract with Alteram Solutions. Documents obtained by the Sunday Times show that senior RAF officials, including those in suspended CEO Collins Letsoalo’s office, hastily compiled and approved a memorandum in February 2023 to participate in a Department of Employment & Labour contract.

Key concerns include:

• The decision to contract Alteram appears to have been made in 2022, before internal approval processes
• CFO Bernice Potgieter created a conflict of interest by both approving the business case and chairing the committee that ratified it
• No paper trail exists showing how the study leading to this decision was conducted
• The process violated the RAF’s own procurement policies

Four senior executives, including acting CEO Phathu Lukhwareni and CFO Bernice Potgieter, were placed on precautionary suspension in November 2025, though it’s unclear if these suspensions relate directly to the call centre deal.

2. Supreme Court Ruling on Judge’s RAF-Related Prosecution

The Supreme Court of Appeal dismissed a bid by Bloemfontein High Court Judge Mpina Abednego Mathebula to halt his prosecution for allegedly misappropriating R1.32 million from the Road Accident Fund. The case dates back to when Mathebula was still a practicing attorney, with allegations that his law firm improperly handled RAF payments before he became a judge.

This ruling represents a significant development in the ongoing efforts to hold individuals accountable for RAF-related financial misconduct.

3. Court Rules RAF Liable in Unusual Tree Branch Case

In a unique damages claim, the Western Cape High Court ruled that the RAF is liable for injuries sustained by farm worker Shereen Booysen, who was struck in the eye by a thorn from a tree branch while riding in the back of an open truck.

Case details:

• Booysen was a passenger on an uncovered truck transporting farm workers
• Driver Ricardo Baartman drove under low-hanging branches despite knowing the danger
• The court found the driver’s actions constituted negligent driving
• Booysen required two eye operations and a month-long hospital stay

Acting Judge F Moosa noted that the driver was aware of the hazard but failed to protect passengers, establishing clear negligence and RAF liability.

4. Debunking the R18 Billion Foreign Claims Myth

Africa Check’s comprehensive fact-checking investigation has definitively debunked claims that the RAF paid R18 billion to foreign nationals over five years. The investigation found:

The Real Numbers:

• Actual payments to non-South African citizens: approximately R8.6 billion (2019/20-2023/24)
• This represents less than half of the claimed R18 billion
• Foreign claims constitute just over 1% of total RAF payouts
• The RAF itself stated it has “no information regarding the origin of the R18 billion figure”

The inflated figure was initially promoted by suspended CEO Collins Letsoalo and repeated by RAF spokesperson McIntosh Polela, who later admitted to “misspeaking.” No public correction has been issued.

Ongoing Parliamentary Investigation

The Standing Committee on Public Accounts (SCOPA) continues its inquiry into RAF financial matters, with chairperson Songezo Zibi emphasizing that foreign claims are not the primary issue facing the fund.

Key investigation focuses:

• Controversial accounting changes that reduced reported liabilities from R330 billion to under R30 billion
• Systemic governance failures and financial mismanagement
• Substantial claims backlog affecting South African citizens
• Allegations of corruption and maladministration

RAF’s Financial Crisis: The Real Issues

Legal expert Kirstie Haslam, who has analyzed the RAF’s operations, describes the foreign claims narrative as a distraction from more serious problems:

“The far bigger issue has been rampant maladministration. The issue of non-South African citizen claimants is not a major driver when it comes to RAF payouts and performance.”

The fund’s actual challenges include:

• Questionable accounting practices that hide true liabilities
• Slow claims processing creating artificial backlogs
• Governance failures at executive level
• Procurement irregularities and potential corruption

Impact on Road Accident Victims

While political and administrative battles rage, legitimate claimants continue to suffer delays in receiving compensation. The RAF processes thousands of claims annually from South Africans injured in road accidents, with the fund collecting approximately R50 billion annually through fuel levies.

Personal injury attorney Kirstie Haslam notes that the focus on foreign claims deflects attention from the real victims – South African citizens waiting for legitimate compensation.

Looking Ahead

As 2025 draws to a close, the RAF faces multiple challenges:

• Ongoing SCOPA investigation into financial practices
• Criminal prosecutions of individuals involved in alleged misconduct
• Need for governance reform and transparency
• Addressing the legitimate claims backlog
• Restoring public confidence in the system

Conclusion

The Road Accident Fund’s troubles in December 2025 highlight systemic issues that go far beyond the scapegoating of foreign claimants. With executive suspensions, court battles, and parliamentary investigations ongoing, the focus must return to the fund’s core mission: providing timely, fair compensation to road accident victims while maintaining fiscal responsibility and transparent governance.

The coming months will be crucial in determining whether meaningful reform can restore the RAF’s credibility and effectiveness in serving South African road users.

Stay updated with the latest RAF developments and South African legal news by following our blog for comprehensive coverage and analysis.