Road Accident Fund Crisis: Parliament Launches Inquiry into Financial Mismanagement and Governance Failures

Road Accident Fund Crisis: Parliament Launches Inquiry into Financial Mismanagement and Governance Failures

Date: July 30, 2025

The Road Accident Fund (RAF) in South Africa is facing unprecedented scrutiny as Parliament has launched a comprehensive inquiry into the fund’s governance failures, financial mismanagement, and long-term sustainability. This move comes after years of complaints from road accident victims, medical service providers, and legal professionals about delayed payments and systemic dysfunction within the RAF.

The Standing Committee on Public Accounts (SCOPA) is leading the investigation, focusing on irregular, wasteful, and fruitless expenditure, as well as the legality and transparency of the RAF’s accounting policies and reporting systems. The inquiry will also examine the roles and responsibilities of the CEO, Board, and Minister, and assess the real-world impact of delayed payments to hospitals, clinics, attorneys, and claimants.

In a major development, Transport Minister Barbara Creecy recently dissolved the RAF board, signaling a significant shake-up in the fund’s governance. Meanwhile, the RAF’s CEO, Collins Letsoalo, remains suspended on full pay and benefits, further highlighting the leadership crisis at the institution.

Stakeholders such as the Association for Protection of Road Accident Victims (APRAV) and the Board of Healthcare Funders have welcomed the inquiry, calling it a much-needed opportunity for transformation and accountability. According to APRAV, this is a real chance for the RAF to address its systemic issues and restore public trust.

The RAF continues to face criticism for delays in processing and disbursing compensation to road accident victims, with many calling for urgent reforms to ensure timely and fair payouts.

Outlook: The outcome of Parliament’s inquiry could mark a turning point for the RAF and its stakeholders. If successful, it may lead to improved governance, greater financial accountability, and better service delivery for South Africans affected by road accidents.

Keywords: Road Accident Fund, South Africa, RAF board, SCOPA, financial mismanagement, governance, delayed payments, Parliament inquiry