Road Accident Fund Board Dissolved: What It Means for South Africa – July 2025 Update

Road Accident Fund Board Dissolved: What It Means for South Africa – July 2025 Update

Date: July 25, 2025

The South African Minister of Transport, Barbara Creecy, has taken decisive action by dissolving the board of directors at the Road Accident Fund (RAF). This move comes after a series of governance and operational failures that have severely impacted the RAF’s ability to fulfill its mandate to road users across the country.

Key Issues Leading to the Dissolution

• Protracted and costly litigation, deepening the RAF’s financial problems.
• Reckless handling of the suspension of CEO Collins Letsoalo, leading to legal challenges and uncertainty.
• Frequent default judgments, worsening the fund’s financial sustainability.
• Lack of board cohesion, with most resolutions passed by casting vote rather than consensus.
• Failure to fill critical executive positions, including Chief Claims Officer and Head of Legal.

As a result, Minister Creecy has approached the National Treasury to help establish an interim functionary to act as the accounting authority for the RAF, in line with the Public Finance Management Act. This interim group is expected to stabilize the situation until a permanent solution is found.

Reactions and Next Steps

The Organisation Undoing Tax Abuse (Outa) has welcomed the decision, calling it a necessary step towards accountability and reform. Outa has urged the minister to appoint a new board with the political will to address the RAF’s longstanding issues and investigate past misconduct.

What This Means for Road Users

The dissolution of the RAF board marks a significant turning point for the fund and its stakeholders. While the immediate future may bring some uncertainty, the intervention aims to restore stability and improve service delivery for South African road users.

For more details, read the original news report on TopAuto.co.za (July 25, 2025).

Keywords: Road Accident Fund South Africa, RAF board dissolved, South Africa transport news, July 2025