Road Accident Fund South Africa: Major Governance Overhaul and Settlement Initiatives – August 2025 Update

The Road Accident Fund (RAF) in South Africa has undergone significant changes in recent weeks, marking a pivotal moment in the organization’s history. From board dissolution to new settlement initiatives, these developments directly impact thousands of claimants and stakeholders across the country.

RAF Board Dissolved Due to Governance Failures

On July 15, 2025, Transport Minister Barbara Creecy made the decisive move to dissolve the entire Board of Directors of the Road Accident Fund. This unprecedented action followed persistent governance and operational challenges that significantly undermined the RAF’s ability to fulfill its statutory mandate.

Key Governance Issues That Led to Board Dissolution

Minister Creecy identified several critical governance failures:

• Costly Litigation: Protracted and expensive legal battles over accounting standards that strained the entity’s financial resources
• CEO Suspension Mishandling: Inconsistent and reckless handling of the Chief Executive Officer’s suspension, leading to legal challenges and institutional uncertainty
• Default Judgments: Frequent incurrence of default judgments against the RAF, worsening contingent liabilities and financial sustainability
• Board Division: 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

Interim Leadership and Recovery Measures

Following the board dissolution, Minister Creecy implemented several immediate interventions to restore stability:

Interim Accounting Authority

A submission has been prepared requesting the Minister of Finance to appoint an interim functionary as Accounting Authority under Section 49(3) of the Public Finance Management Act (PFMA). This appointment aims to prevent a governance vacuum while a new board is constituted.

Expert Advisory Committee

The minister has initiated the appointment of a panel of independent experts to review the RAF’s business processes and propose actionable recommendations for sustainable operational and governance models.

New Board Recruitment

A transparent, merit-based recruitment process has been initiated to appoint a new board in line with applicable legislation.

Parliamentary Inquiry into RAF Financial Management

The Standing Committee on Public Accounts (SCOPA) has adopted terms of reference for a comprehensive parliamentary inquiry into the RAF’s financial matters. The committee aims to begin the inquiry in mid-September 2025, with completion targeted for the end of October 2025.

This inquiry represents a significant step toward ensuring accountability and transparency in the RAF’s operations, addressing long-standing concerns about financial management and governance.

RAF Settlement Drive: Fast-Tracking Claims Processing

In a positive development for claimants, the RAF Pretoria Regional Office announced a block settlement drive from August 6-8, 2025. This initiative is part of a broader national effort to reduce the backlog of claims ready for settlement.

Settlement Drive Details

• Participation: Law firms can submit up to 10 qualifying claims per firm
• Requirements: Submissions must include Link Number, Claim Number, Claimant’s Full Name, Attorney details, and Vendor Reference Number
• Processing: Claims processed on a first-come, first-served basis
• Eligibility: Only claims lodged with Pretoria Regional Office and fully prepared for settlement

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

Road Accident Benefit Scheme Bill Progress

Minister Creecy has reiterated the department’s commitment to finalizing the Road Accident Benefit Scheme Bill. This legislation will introduce a no-fault system designed to make it easier for road accident victims to access benefits without incurring costly legal fees.

However, some critics argue that proper execution of the existing Road Accident Fund Act should be prioritized over introducing new legislation.

SIU Investigation Expansion

The minister has requested the Special Investigating Unit (SIU) to confirm whether the current investigation under Proclamation 44 of 2024 covers recent events. If not, a formal request will be made to expand the investigation’s scope to include developments from the past three months.

Impact on RAF Claimants and Stakeholders

These developments have significant implications for various stakeholders:

For Claimants

• Potential for faster claim processing through settlement drives
• Improved governance may lead to more efficient service delivery
• Reduced legal costs through proposed no-fault system

For Legal Practitioners

• Opportunities to participate in block settlement initiatives
• Potential changes in claim processing procedures
• Need to stay updated on evolving RAF policies

For the Public

• Enhanced transparency through parliamentary inquiry
• Improved accountability in public fund management
• Better service delivery for road accident victims

Looking Ahead: RAF Reform and Recovery

The comprehensive reforms underway at the RAF represent a critical juncture for the organization. Key focus areas for the coming months include:

• Governance Restoration: Establishing effective leadership and oversight structures
• Financial Stability: Addressing contingent liabilities and improving financial management
• Operational Efficiency: Streamlining claim processing and reducing backlogs
• Stakeholder Confidence: Rebuilding trust among claimants, legal practitioners, and the public

Conclusion

The recent developments at the Road Accident Fund mark a significant turning point in the organization’s history. While the governance failures that led to the board dissolution are concerning, the swift action taken by Minister Creecy and the implementation of recovery measures provide hope for improved service delivery.

The combination of interim leadership, expert advisory support, parliamentary oversight, and proactive settlement initiatives creates a foundation for meaningful reform. For RAF claimants and stakeholders, these changes represent an opportunity for better, more efficient service delivery in the months ahead.

As the situation continues to evolve, it will be crucial to monitor the effectiveness of these interventions and their impact on the RAF’s ability to serve South African road accident victims effectively.

Stay updated on the latest RAF developments by following official government communications and reputable news sources. For specific claim-related queries, contact the RAF directly through their official channels.