Road Accident Fund in Crisis: Latest News, Parliamentary Inquiry, and Controversial Reforms (August 1, 2025)

Road Accident Fund in Crisis: Latest News, Parliamentary Inquiry, and Controversial Reforms (August 1, 2025)

Date: August 1, 2025

The Road Accident Fund (RAF) in South Africa is facing unprecedented scrutiny and upheaval, with major developments unfolding over the past week. Here’s a summary of the latest news, key issues, and what it means for road accident victims, service providers, and the public.

Parliament Launches Inquiry into RAF Mismanagement

On July 31, 2025, Parliament’s Standing Committee on Public Accounts (SCOPA) initiated a comprehensive inquiry into the RAF, citing serious concerns over governance failures, financial mismanagement, and the fund’s long-term sustainability. The inquiry will examine irregular, wasteful, and fruitless expenditure, the legality and transparency of RAF accounting, and the operational impact of recent decisions. The roles of the CEO, Board, and Minister are under the spotlight, especially as the RAF’s CEO remains suspended and the board has been dissolved (IOL).

Victims, hospitals, clinics, attorneys, and other service providers have long complained about delayed payments and systemic dysfunction. The inquiry is seen as a potential turning point, with advocacy groups like the Association for the Protection of Road Accident Victims (Aprav) expressing hope for real accountability and reform.

Controversy Over Road Accident Benefit Scheme Bill

Amid the governance crisis, Transport Minister Barbara Creecy has announced plans to revive the Road Accident Benefit Scheme (RABS) Bill. The bill aims to replace the current RAF system with a no-fault, defined benefit scheme, which the Minister claims will make compensation more accessible and reduce legal costs. However, Aprav and other critics argue that the RABS Bill is “ill-advised,” warning it could further disadvantage poor and rural victims, limit compensation, and increase administrative burdens (Moneyweb).

Key concerns include:

• Predetermined compensation for injury classes, ignoring individual circumstances
• Monthly payments with no provision for significant initial expenses
• Exclusion of victims without digital access or resources
• Potential increase in government liability and administrative complexity

Aprav and other stakeholders urge the government to focus on fixing the existing RAF system rather than introducing a new, untested scheme.

What’s Next for the RAF?

The coming weeks will be critical for the future of the Road Accident Fund. Parliament’s inquiry could lead to major reforms, while the debate over the RABS Bill is set to intensify. Road accident victims, legal professionals, and healthcare providers are watching closely for signs of real change and improved accountability.

Sources:

• Moneyweb: Reintroduction of Road Accident Benefit Scheme Bill ‘ill-advised’ (24 July 2025)
• IOL: RAF Under Fire: Parliament investigates financial mismanagement and delays (1 August 2025)

For more updates on the Road Accident Fund and road accident compensation in South Africa, follow this blog daily.