Road Accident Fund Crisis: Major Governance Overhaul and Parliamentary Inquiry in 2025

RAF Board Dissolved Amid Governance Crisis

The Road Accident Fund (RAF) has undergone significant upheaval in 2025, with Transport Minister Barbara Creecy dissolving the entire board of directors on July 15, 2025, following 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

The decision to dissolve the RAF board was driven by several critical governance failures:

• Costly Litigation: The board pursued protracted and expensive litigation on accounting standards applications, further straining the entity’s financial resources
• CEO Suspension Mishandling: Inconsistent and reckless handling of the Chief Executive Officer’s suspension led to legal challenges and institutional uncertainty
• Default Judgments: Frequent incurrence of default judgments against the RAF, exacerbating contingent liabilities and weakening financial sustainability
• Board Division: Deep divisions within the board, with most resolutions passed through casting votes rather than consensus
• Executive Vacancies: Failure to fill critical positions including Chief Claims Officer and Head of Legal

New Interim Board Appointed

On August 8, 2025, Minister Creecy announced the appointment of an interim board for a six-month period to address the governance vacuum. The interim board is led by:

• Chairperson: Kenneth Brown
• Vice-Chairperson: Nonhlanhla Mabusela-Aikhuere
• Board Members: Ntswaki Kutumela, Innocentia Mmule Pule, Richard Dyantyi, Mpontshane Alfred Mkhipheni, Alfredina (Ntina) Themba, and Neeshan Balton

Interim Board Mandate

The interim board has been tasked with several critical responsibilities:

• Providing strategic direction to enable the RAF to deliver on its mandate
• Ensuring financial and governance stability
• Addressing deficiencies in governance and control systems
• Filling critical executive positions
• Cooperating with current and future Special Investigating Unit (SIU) investigations

Parliamentary Inquiry Launched

The Standing Committee on Public Accounts (SCOPA) has launched a comprehensive inquiry into the RAF’s financial matters, adopting terms of reference on July 1, 2025. The inquiry will focus on the 2020/21 to 2024/25 financial years and covers seven main areas:

1. Governance failures and ministerial and board oversight
2. Financial management and PFMA compliance
3. Procurement and supply chain management irregularities
4. Legal and litigation expenditure
5. Fraud, corruption, and whistle-blower reports
6. Automation and claims processing
7. Governance and human resource matters

Parliamentary Inquiry Timeline

SCOPA aims to begin the inquiry in mid-September 2025, with completion targeted for the end of October 2025. The committee has the authority to subpoena witnesses who refuse to appear and will conduct hearings under oath.

Road Accident Benefit Scheme Bill Progress

Despite the governance crisis, the Department of Transport continues to pursue the Road Accident Benefit Scheme Bill, which aims to introduce a no-fault system to make it easier for road accident victims to access benefits without costly legal bills. This legislation represents a significant overhaul of the current RAF system and would expand access to benefits for all road users.

RAF Settlement Drives Continue

Despite the governance challenges, the RAF Pretoria Regional Office announced a block settlement drive in August 2025 to fast-track claims that are ready for settlement. This initiative aims to reduce the backlog of claims and provide relief to accident victims who have been waiting for compensation.

Expert Advisory Committee Established

Minister Creecy has initiated the appointment of a panel of independent experts to review the RAF’s business processes and propose actionable recommendations. This expert advisory committee will support the development of a sustainable operational and governance model for the fund.

SIU Investigation Expansion

The Minister has requested the Special Investigating Unit (SIU) to establish whether the current investigation under Proclamation 44 of 2024 covers recent events and, if not, to formally expand the scope to include developments from the last three months.

Impact on Road Accident Victims

The governance crisis has had significant implications for road accident victims seeking compensation. The frequent default judgments and operational challenges have contributed to delays in claim processing and settlements. The interim board’s primary focus will be on restoring stability and ensuring timely, equitable access to benefits for accident victims.

Looking Forward: RAF Reform Priorities

The RAF’s reform agenda includes several key priorities:

• Stabilizing governance and operational systems
• Reducing default judgments and legal costs
• Improving claims processing efficiency
• Implementing the Road Accident Benefit Scheme Bill
• Ensuring financial sustainability
• Enhancing transparency and accountability

Conclusion

The Road Accident Fund’s 2025 governance crisis represents a critical turning point for South Africa’s road accident compensation system. With the appointment of an interim board, parliamentary inquiry underway, and legislative reforms in progress, stakeholders are hopeful that these measures will restore stability and improve service delivery to accident victims. The success of these interventions will be crucial for ensuring the RAF can fulfill its mandate of providing timely and appropriate compensation to road accident victims across South Africa.

Stay updated on the latest RAF developments and parliamentary inquiry proceedings as this story continues to unfold throughout 2025.