Road Accident Fund Crisis: Major Leadership Changes and Settlement Initiatives in August 2025

RAF Board Dissolved Amid Governance Crisis

The Road Accident Fund (RAF) has undergone significant leadership changes in August 2025, following Transport Minister Barbara Creecy’s decision to dissolve the entire board of directors on July 15, 2025. This decisive action came after persistent governance and operational challenges that severely undermined the fund’s ability to fulfill its statutory mandate.

Key Governance Failures That Led to Board Dissolution

Minister Creecy cited several critical governance issues that necessitated the board’s dissolution:

• Costly litigation: The RAF pursued protracted and expensive legal battles over accounting standards, further straining the entity’s financial resources
• CEO suspension mishandling: Inconsistent and reckless handling of CEO Collins Letsoalo’s suspension attracted legal challenges and created institutional uncertainty
• Default judgments: Frequent incurrence of default judgments against the RAF, worsening contingent liabilities and weakening financial sustainability
• Board divisions: Deep divisions within the board, with most resolutions passed through casting votes rather than consensus
• Critical vacancies: Failure to fill essential executive positions including Chief Claims Officer and Head of Legal

Collins Letsoalo’s Departure Confirmed

Controversial suspended RAF CEO Collins Letsoalo is officially no longer employed by the fund, with his contract expiring on August 7, 2025. Minister Creecy confirmed his departure, stating simply “he’s gone.” Letsoalo was suspended in June 2025 for alleged insubordination after refusing to attend a Parliamentary Standing Committee on Public Accounts (Scopa) meeting.

The former CEO’s unsuccessful legal challenge to overturn his suspension highlighted the governance dysfunction that plagued the RAF under the previous board’s leadership.

New Interim Board Appointed

To address the governance vacuum, Minister Creecy has appointed an interim RAF board for six months or until a permanent board is established. The interim leadership includes:

• Kenneth Brown – Chairperson (current DBSA board member with nearly 20 years at National Treasury)
• Nonhlanhla Mabusela-Aikhuere – Vice Chairperson
• Additional members: Ntswaki Kutumela, Innocentia Mmule Pule, Richard Dyantyi, Mpontshane Alfred Mkhipheni, Alfredina Themba, and Neeshan Balton

Interim Board’s Priority Mandate

The new interim board has been tasked with several critical objectives:

• Providing strategic direction to enable the RAF to deliver on its mandate
• Ensuring financial and governance stability
• Addressing deficiencies in governance and control systems
• Reducing frequent default judgments against the RAF
• Filling critical executive positions
• Cooperating with current and future SIU investigations

RAF Settlement Drive Initiative Launched

In a positive development, the RAF has launched a national initiative to reduce the backlog of claims ready for settlement. The Pretoria Regional Office conducted the first block settlement drive from August 6-8, 2025, with plans to roll out the program across all regions.

Settlement Drive Details

The settlement initiative operates under specific parameters:

• Law firms can submit a maximum of 10 qualifying claims per firm
• Submissions processed on a first-come, first-served basis
• Only claims lodged with regional offices and fully prepared for settlement are considered
• Court-dismissed or rejected claims are excluded
• Individual attorney submissions not accepted – only law firm submissions

Acting CEO Phathutshedzo Lukhwareni emphasized the fund’s commitment to reducing settlement processing times while maintaining compassionate, efficient, and accessible service to all claimants.

Parliamentary Inquiry and SIU Investigation Expansion

The Standing Committee on Public Accounts (Scopa) has adopted terms of reference for a comprehensive inquiry into RAF financial matters, scheduled to begin in mid-September 2025 with completion targeted for end-October 2025.

Additionally, Minister Creecy has requested the Special Investigating Unit (SIU) to expand its investigation scope beyond the current 2021 timeframe to cover recent events, including:

• Payment irregularities
• Contingent liabilities
• Panel of attorneys issues
• Complaints handling procedures

Road Accident Benefit Scheme Bill Progress

The Transport Ministry continues prioritizing the finalization of the Road Accident Benefit Scheme Bill, which aims to introduce a no-fault system making it easier for road accident victims to access benefits without costly legal processes.

This legislative reform is considered essential for RAF stability, as it would introduce a defined schedule of benefits and address the organization’s contingent liability challenges.

Looking Forward: RAF Stabilization Efforts

The comprehensive intervention by Minister Creecy represents the most significant RAF reform effort in recent years. Key stabilization measures include:

• Expert Advisory Committee establishment to review business processes
• Transparent recruitment process for permanent board members
• Enhanced oversight and regulatory engagement
• Focus on creating a proper claims database and queuing system

Challenges Ahead

Despite these positive developments, the RAF faces ongoing challenges:

• Massive claims backlog requiring systematic processing
• Financial sustainability concerns
• Need for improved operational efficiency
• Restoring public confidence in the institution

Conclusion

The Road Accident Fund’s August 2025 developments mark a critical turning point for the embattled institution. With new leadership, settlement initiatives, and comprehensive reform efforts underway, there are signs of hope for improved service delivery to road accident victims across South Africa.

The success of these interventions will depend on the interim board’s ability to implement effective governance systems, the expansion of settlement drives to other regions, and the timely passage of the Road Accident Benefit Scheme Bill.

Stakeholders, including legal practitioners and claimants, will be closely monitoring the RAF’s progress in addressing its operational challenges and reducing the claims backlog that has plagued the organization for years.