Road Accident Fund Update: R3.3 Billion Paid to Claimants as New Board Tackles R20 Billion Backlog

Major Breakthrough: RAF Pays R3.3 Billion in Outstanding Claims

The Road Accident Fund (RAF) has made significant progress in addressing its massive claims backlog, paying out R3.3 billion in outstanding claims over just two weeks in September 2025. This represents a major step forward for the embattled state entity that has struggled with delayed payments for years.

The new interim RAF board, appointed in August 2025 under the leadership of Kenneth Brown, announced these payments as “the first step towards restoring the dignity of the Road Accident Fund.” This development comes as welcome relief for thousands of claimants who have been waiting months, and in some cases years, for their compensation.

Understanding the RAF Claims Crisis

The Road Accident Fund faces an estimated R20 billion in outstanding claims that are older than 180 days. This massive backlog has created significant financial and emotional strain for accident victims and their families who depend on these payments for medical care, rehabilitation, and basic living expenses.

Key statistics about the RAF crisis:

• R10.4 billion in unpaid claims at the end of March 2025
• Total claims liability of R40.4 billion
• Monthly RAF income of approximately R4 billion from petrol levy
• Expected monthly payments of over R4 billion going forward

New Leadership Brings Hope for Change

Transport Minister Barbara Creecy dissolved the previous RAF board in July 2025 and appointed an interim board in August 2025. The new board, chaired by Kenneth Brown (a current Development Bank of Southern Africa board member with extensive National Treasury experience), has implemented several key changes:

Immediate Actions Taken:

• Prioritized settlement of claims older than 180 days
• Streamlined processes to reduce administrative delays
• Enhanced monitoring systems for tracking paid and outstanding claims
• Bi-monthly reporting to attorneys and suppliers
• Direct engagement protocols for dispute resolution

Legal Challenges and Court Decisions

The RAF’s progress comes after a significant legal setback in September 2025. The High Court in Pretoria struck down the RAF’s application for an extension of the 180-day moratorium on claim payments. This court decision meant the RAF had to revert to paying claims within 14 calendar days instead of having up to six months.

Judge Jabulani Nyathi’s ruling effectively forced the RAF to accelerate its payment schedule, contributing to the urgency behind the recent R3.3 billion payout.

Concerning Developments: Intimidation and Surveillance

While the RAF shows progress in claim payments, concerning developments have emerged around the parliamentary inquiry into the fund. Twenty-three civil society organizations have raised alarms about:

• Surveillance of Scopa Chairperson: Songezo Zibi revealed he’s under surveillance, with National Police Commissioner Fannie Masemola conducting a threat assessment
• Whistleblower intimidation: RAF whistleblowers reportedly fear for their safety
• Threats to accountability: These actions could undermine Parliament’s oversight mandate

The civil society coalition, including organizations like the Ahmed Kathrada Foundation, Amnesty International South Africa, and Organisation Undoing Tax Abuse, has demanded:

• Parliamentary condemnation of intimidation tactics
• Protection guarantees for RAF whistleblowers
• Urgent investigation by the Hawks
• Assessment of potential misuse of state surveillance capabilities

What This Means for RAF Claimants

The recent developments offer both hope and caution for RAF claimants:

Positive Developments:

• Faster payment processing for claims older than 180 days
• Commitment to monthly payments exceeding R4 billion
• Improved transparency through bi-monthly reporting
• Direct communication channels with regional managers

Ongoing Challenges:

• The R20 billion backlog remains substantial
• Questions about long-term sustainability
• Potential interference with parliamentary oversight
• Need for systemic reforms to prevent future backlogs

Looking Ahead: RAF Transformation Plans

The interim board has indicated plans extending beyond immediate claim payments. Kenneth Brown has mentioned “aggressive” payment strategies and modernization of the entire RAF claims system. The board has committed to:

• Eliminating claims backlogs permanently
• Implementing sustainable claims management systems
• Restoring public confidence in the fund
• Ensuring compliance and accountability

Key Takeaways for Stakeholders

For legal practitioners, claimants, and other stakeholders, the current RAF situation presents both opportunities and challenges:

• Attorneys: Improved communication channels and faster processing times
• Claimants: Realistic hope for faster claim resolution
• Government: Need for continued oversight and support
• Civil society: Importance of protecting transparency and accountability

Conclusion

The Road Accident Fund’s recent R3.3 billion payout represents a significant step toward addressing South Africa’s road accident compensation crisis. While the new interim board’s efforts show promise, the massive R20 billion backlog and concerning reports of intimidation highlight the complex challenges ahead.

Success will depend on sustained political will, adequate funding, systemic reforms, and protection of those working to ensure accountability. For the thousands of South Africans awaiting RAF compensation, these developments offer cautious optimism that their long wait for justice may finally be coming to an end.

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