Road Accident Fund Update September 2025: R3.3 Billion Paid as Corruption Probe Intensifies

Major Developments in South Africa’s Road Accident Fund

The Road Accident Fund (RAF) has made significant headlines in September 2025, with the new interim board announcing substantial progress in clearing outstanding claims while facing intensified scrutiny over alleged corruption. Here’s a comprehensive update on the latest developments affecting thousands of South African claimants.

R3.3 Billion Payment Breakthrough

In a major development, the RAF has paid R3.3 billion in outstanding claims over just two weeks in September 2025. This represents the first significant step toward addressing the estimated R20 billion backlog of claims outstanding for more than 180 days.

The new interim board, led by chairperson Kenneth Brown, described these payments as “the first step towards restoring the dignity of the Road Accident Fund.” The board has committed to monthly payments exceeding R4 billion throughout the year, which could substantially reduce the claims backlog.

New Leadership and Governance Changes

Transport Minister Barbara Creecy dissolved the previous RAF board on July 15, 2025, citing urgent governance issues. The new interim board, appointed on August 8, 2025, includes:

• Kenneth Brown as chairperson – a current Development Bank of Southern Africa board member with nearly 20 years of National Treasury experience
• Strategic focus on modernizing the entire RAF claims system
• Implementation of strengthened monitoring systems for transparency and accountability

Parliamentary Corruption Investigation Underway

The Standing Committee on Public Accounts (SCOPA) has launched a comprehensive inquiry into alleged corruption within the RAF system. Key aspects of the investigation include:

• Alleged collusion between judges and lawyers in RAF cases
• Investigation into maladministration and misconduct within the fund
• Examination of the Legal Practice Council’s handling of over 10,000 RAF-related complaints since 2019
• Timeline: SCOPA aims to complete the inquiry by October 2025

Financial Position and Challenges

The RAF’s financial situation remains challenging:

• R10.4 billion in unpaid claims at the end of March 2025
• R40.4 billion total claims liability
• Monthly income of approximately R4 billion from petrol levy
• Annual revenue of around R48 billion

Despite these challenges, the RAF maintains it can meet its obligations over the next 12 months with the new payment strategy.

Legal Developments and Court Decisions

A significant legal setback occurred when the High Court in Pretoria dismissed the RAF’s application for an extension of the 180-day payment moratorium. Judge Jabulani Nyathi struck the application from the court roll on September 2, 2025, citing lack of urgency.

This decision means the RAF must now pay claims within 14 calendar days instead of the previous six-month window, adding pressure to expedite payments.

Impact on Claimants and Legal Practitioners

The developments have significant implications for:

• Claimants: Faster payment processing for claims older than 180 days
• Legal practitioners: Bi-monthly reports on payment progress and outstanding claims
• Service providers: Improved communication channels with regional managers

Future Outlook and Reform Initiatives

The interim board has outlined several reform initiatives:

• Sustainable claims management system to eliminate future backlogs
• Enhanced controls for prompt document review
• Transparent reporting with bi-monthly updates to stakeholders
• Direct engagement protocols for dispute resolution

What This Means for Road Accident Victims

For South Africans affected by road accidents, these developments signal:

• Faster claim processing times
• Improved transparency in the payment process
• Better accountability measures
• Potential for reduced bureaucratic delays

Conclusion

The Road Accident Fund is undergoing its most significant transformation in years. While the R3.3 billion payment represents progress, the ongoing corruption investigation and governance reforms will be crucial for long-term sustainability. Claimants and stakeholders should monitor developments closely as the SCOPA inquiry progresses and the new board implements its turnaround strategy.

The success of these initiatives will ultimately determine whether the RAF can restore public confidence and fulfill its mandate to provide timely compensation to road accident victims across South Africa.

Stay updated on RAF developments by following our regular coverage of South African financial and legal news.