Road Accident Fund Update October 2025: Major Payments, Foreign Claims, and Corruption Inquiry

The Road Accident Fund (RAF) continues to dominate South African headlines in October 2025, with significant developments ranging from massive claim payments to controversial foreign national payouts and a parliamentary corruption inquiry. Here’s a comprehensive overview of the latest RAF news and what it means for South African taxpayers and road accident victims.

R546 Million Paid to Foreign Nationals Sparks Controversy

In a revelation that has raised serious questions about the RAF’s financial management, Acting Transport Minister Kgosientsho Ramokgopa disclosed that South African taxpayers have paid a staggering R546 million to foreign nationals through RAF claims during the 2024/25 financial year.

This disclosure came in response to parliamentary questions from ActionSA MP Alan Beesley, who expressed concern about taxpayers’ money from the fuel levy being used to cover medical expenses of foreigners. The figures reveal:

• Total RAF payments: R42.94 billion across 128,716 claims in 2024/25
• Foreign national claims: R546 million
• Number of foreign claims registered: 222 personal claims
• Claims settled: Only 17 out of 222 claims as of September 2025

ActionSA has indicated it will pursue legislative changes to address this issue, with Beesley questioning the legitimacy of these claims and calling for visitors to South Africa to have their own medical coverage.

RAF Pays R3.3 Billion in Outstanding Claims

In a positive development, the new interim RAF board announced that it has paid R3.3 billion in outstanding claims over a two-week period in September 2025. This represents the first major step in addressing the estimated R20+ billion backlog of claims outstanding for more than 180 days.

The interim board, led by Kenneth Brown (former National Treasury executive and current DBSA board member), has committed to:

• Monthly payments exceeding R4 billion throughout the year
• Comprehensive review of all claims outstanding beyond 180 days
• Strengthened monitoring systems for transparency
• Bi-monthly reports to plaintiff attorneys and suppliers

This aggressive payment schedule follows the High Court’s dismissal of the RAF’s application for a 180-day payment moratorium, forcing the fund to settle claims within 14 calendar days instead of six months.

SCOPA Launches Corruption Inquiry

The Standing Committee on Public Accounts (SCOPA) has begun a comprehensive inquiry into the financial matters of the Road Accident Fund, with particular focus on alleged corruption between judges and lawyers. The inquiry, which commenced in October 2025, aims to investigate:

• Systemic corruption within the RAF system
• Alleged collusion between legal professionals and judicial officers
• Financial mismanagement and fraudulent claims
• The overall governance failures that led to the current crisis

The inquiry has already taken a serious turn, with reports that SCOPA chairperson Songezo Zibi has received threats and is being followed, allegedly related to the parliamentary investigation into RAF corruption.

Recent Fraud Convictions Highlight Systemic Issues

The corruption concerns are not unfounded. Recent court cases have exposed the extent of fraudulent activities within the RAF system, including the sentencing of an ex-police officer and claimant to 15 years imprisonment for attempted R5.4 million RAF fraud in October 2025.

These cases underscore the need for the comprehensive reforms being pursued by the new interim board and the importance of the SCOPA inquiry in rooting out systemic corruption.

Board Dissolution and New Leadership

The current developments follow Minister Barbara Creecy’s decision in July 2025 to dissolve the previous RAF board due to governance failures. The appointment of the interim board represents a fresh start, with Kenneth Brown bringing extensive financial management experience from his time at National Treasury and the Development Bank of Southern Africa.

The interim board has already demonstrated its commitment to transparency and accountability, with regular stakeholder meetings and public reporting on payment progress.

Road Accident Benefit Scheme Bill Progress

Deputy Minister Mkhuleko Hlengwa has confirmed that the Road Accident Benefit Scheme Bill is progressing through Cabinet consultation. This legislation aims to introduce a no-fault system that will:

• Make it easier for road accident victims to access benefits
• Reduce costly legal bills
• Address the challenge of claims by foreigners
• Require tourists to take up insurance
• Ensure long-term financial sustainability

Financial Sustainability Concerns

Despite the positive payment developments, questions remain about the RAF’s long-term financial sustainability. With R10.4 billion in unpaid claims at the end of March 2025 and a total claims liability of R40.4 billion, the fund faces significant challenges.

The RAF receives approximately R4 billion monthly from fuel levy contributions, totaling around R48 billion annually. However, the growing backlog and increasing claim values continue to strain the system.

What This Means for Road Accident Victims

For road accident victims and their families, these developments offer both hope and concern:

Positive developments:

• Accelerated claim payments under new leadership
• Improved transparency and accountability
• Commitment to clearing the backlog
• Upcoming legislative reforms

Ongoing challenges:

• Massive outstanding liability
• Systemic corruption issues
• Questions about long-term sustainability
• Complex legal and administrative processes

Looking Ahead

The Road Accident Fund remains at a critical juncture in October 2025. While the new interim board’s aggressive approach to claim payments and transparency is encouraging, the scale of the challenges requires sustained effort and comprehensive reform.

The SCOPA inquiry’s findings will be crucial in addressing systemic corruption, while the Road Accident Benefit Scheme Bill could provide the legislative framework needed for long-term sustainability. The coming months will be critical in determining whether these reforms can restore public confidence in the RAF and ensure that road accident victims receive the support they deserve.

For South African taxpayers, the focus on foreign national claims and overall financial management will continue to be areas of intense scrutiny as the fund works to balance its obligations with fiscal responsibility.

Key Takeaways

• RAF paid R546 million to foreign nationals in 2024/25, sparking taxpayer concerns
• New interim board has paid R3.3 billion in outstanding claims in two weeks
• SCOPA corruption inquiry is underway with serious implications
• Legislative reforms through the Road Accident Benefit Scheme Bill are progressing
• Long-term financial sustainability remains a critical challenge

Stay updated with the latest Road Accident Fund developments as this story continues to evolve. The outcomes of the SCOPA inquiry and the implementation of new reforms will significantly impact South Africa’s road accident compensation system.