Road Accident Fund Update October 2025: Major Payment Progress Amid Ongoing Challenges

The Road Accident Fund (RAF) continues to make headlines in October 2025 as South Africa’s state-owned entity grapples with significant financial challenges while implementing new leadership strategies to address a massive claims backlog. Here’s a comprehensive overview of the latest developments affecting RAF claimants and the broader South African public.

RAF Pays R3.3 Billion in Outstanding Claims

In a significant development, the Road Accident Fund’s new interim board announced that R3.3 billion has been paid to claimants in just two weeks during September 2025. This represents the first major step in addressing the estimated R20 billion in outstanding claims that have been pending for more than 180 days.

The interim board, led by Kenneth Brown (former National Treasury executive and current Development Bank of Southern Africa board member), has committed to paying more than R4 billion monthly throughout the year as part of their aggressive strategy to clear the backlog.

Key Payment Initiatives Include:

• Prioritization of claims outstanding beyond 180 days
• Strengthened monitoring systems for tracking paid and outstanding claims
• Bi-monthly reports to plaintiff attorneys and suppliers
• Direct engagement protocols for disputed claims

Foreign Nationals Receive R546 Million in RAF Claims

A controversial revelation emerged in October 2025 when Acting Transport Minister Kgosientsho Ramokgopa disclosed that R546 million was paid to foreign nationals who lodged claims with the RAF during the 2024/25 financial year.

The statistics reveal:

• Total RAF payments: R42.94 billion across 128,716 claims
• Foreign national payments: R546 million
• Total foreign claims registered: 222 personal claims
• Successfully settled foreign claims: Only 17 out of 222

ActionSA MP Alan Beesley raised concerns about taxpayers’ money from the fuel levy covering medical expenses of foreigners, questioning the legitimacy of these claims and calling for legislative reforms to require visitors to have their own medical cover.

Major Fraud Case: 15-Year Sentences Handed Down

In a landmark case highlighting ongoing corruption challenges, the East London Commercial Crimes Court sentenced two individuals to 15 years imprisonment each for attempting to defraud the RAF of R5.4 million.

The case involved:

• Xolani Somtsewu (47) – The claimant who lodged a fraudulent claim
• Mandlenkosi Njekanye (52) – Former police sergeant who manipulated official records

The fraud scheme centered around a December 2020 motor vehicle accident on the N2 Highway near Komga, where the accused manipulated police reports to support a false version of events. RAF investigators uncovered the inconsistencies before any payment was made, leading to the claim being repudiated.

Leadership Changes and Governance Reforms

The RAF has undergone significant leadership changes in 2025:

July 2025:

• Minister Barbara Creecy dissolved the RAF board
• CEO Collins Letsoalo was suspended

August 2025:

• New interim board appointed with Kenneth Brown as chairperson
• Focus on closing governance vacuum and providing strategic direction

The new leadership has implemented several reforms:

• Comprehensive review of all claims outstanding beyond 180 days
• Enhanced controls for prompt documentation review
• Improved monitoring systems for accountability and transparency
• Direct engagement protocols with regional managers

Financial Challenges and Future Outlook

Despite recent progress, the RAF faces substantial financial challenges:

• Outstanding claims backlog: Estimated at over R20 billion
• Total claims liability: R40.4 billion as of March 2025
• Unpaid claims: R10.4 billion at end of 2024/25 financial year
• Monthly income: Approximately R4 billion from fuel levy

Road Accident Benefit Scheme Bill

The Department of Transport is finalizing the Road Accident Benefit Scheme Bill, which will introduce a no-fault system to make it easier for road accident victims to access benefits without costly legal bills. Deputy Minister Mkhuleko Hlengwa indicated the bill is awaiting Cabinet consultation.

Impact on Claimants and Legal Practitioners

The RAF’s challenges have significantly impacted claimants and their families, with many waiting years for compensation. The interim board has acknowledged the “financial and emotional strain that delayed payments have caused” and committed to resolving matters “with urgency and transparency.”

Legal practitioners have been working closely with the new board, with attorney associations and sheriffs meeting regularly to discuss payment protocols and dispute resolution mechanisms.

Looking Ahead: Reform and Sustainability

The RAF’s new leadership is focused on long-term sustainability and systemic reforms:

• Modernizing the entire RAF claims system
• Implementing sustainable claims management systems
• Eliminating future claims backlogs
• Ensuring financial and governance stability

As Kenneth Brown stated, the board has “put our heads on the block” to fix the organization within a reasonable timeframe, acknowledging that failure to deliver results will require further evaluation of leadership and processes.

Conclusion

The Road Accident Fund’s October 2025 developments represent both progress and ongoing challenges. While the R3.3 billion in recent payments demonstrates the new leadership’s commitment to addressing the backlog, the scale of outstanding claims and systemic issues require sustained effort and comprehensive reforms.

For RAF claimants, these developments offer hope for faster claim processing and payment, though the road to full recovery remains long. The success of current initiatives will largely depend on the interim board’s ability to maintain payment momentum while implementing lasting systemic changes.

Stay updated on Road Accident Fund developments and South African legal news by following our blog for the latest updates and analysis.