Road Accident Fund October 2025: SCOPA Inquiry Begins as RAF Pays R3.3 Billion in Outstanding Claims

Major Developments Rock South Africa’s Road Accident Fund in October 2025

October 2025 has proven to be a pivotal month for South Africa’s Road Accident Fund (RAF), with significant developments unfolding that could reshape the country’s largest compensation scheme. From parliamentary inquiries to massive claim payments and leadership changes, here’s your comprehensive update on the latest RAF news.

SCOPA Launches Full-Scale Inquiry into RAF Maladministration

The Standing Committee on Public Accounts (SCOPA) officially began its oversight inquiry into the Road Accident Fund on Tuesday, October 7, 2025, following months of preparation and nearly 100 public submissions. SCOPA Chairperson Songezo Zibi announced that the inquiry will run for several weeks until mid-November, with the final report expected by December 2025.

Key Areas of SCOPA’s Investigation:

• Financial Impropriety: Allegations of maladministration and misuse of public funds exceeding R1 billion
• Governance Failures: Inadequate background checks on senior management with access to significant public funds
• Supply Chain Irregularities: Whistleblower accounts relating to procurement issues
• Leadership Gaps: Failure to appoint critical officials including Chief Claims Officer and Head of Legal
• Transparency Issues: RAF’s refusal to disclose where funds are kept and for what purpose

“We have been preparing the inquiry for the last three months,” said Zibi. “Since October last year, we have asked for accurate and truthful information from the RAF, and the information received has either been unreliable or not forthcoming at all.”

R3.3 Billion Payment Breakthrough: RAF Accelerates Outstanding Claims

In a significant development, the Road Accident Fund has paid R3.3 billion in outstanding claims over just two weeks in September 2025, marking substantial progress toward addressing the estimated R20+ billion backlog of claims outstanding for more than 180 days.

Payment Statistics That Matter:

• R3.3 billion paid in two weeks (September 2025)
• Expected monthly payments of R4+ billion going forward
• Total outstanding claims estimated at over R20 billion
• Priority given to claims older than 180 days

The new interim RAF board, led by Kenneth Brown, has committed to making these substantial monthly payments the “new norm” as part of the fund’s revised business model. This represents a dramatic shift from previous payment patterns and offers hope to thousands of claimants who have been waiting for compensation.

Foreign Claims Controversy: R546 Million Sparks Debate

A significant controversy has emerged regarding payments to foreign nationals. Acting Transport Minister Kgosientsho Ramokgopa revealed that R546 million was paid to foreign claimants during the 2024/25 financial year, sparking intense debate about the use of South African taxpayer funds.

Foreign Claims Breakdown:

• Total paid to foreigners: R546 million (2024/25)
• Number of foreign personal claims registered: 222
• Claims successfully settled: Only 17 out of 222
• Claims repudiated or flagged: 78
• Claims still in progress: 115

ActionSA MP Alan Beesley has raised concerns about this expenditure, questioning the legitimacy of foreign claims and calling for legislative changes to require tourists to have their own medical coverage.

Leadership Transformation Under Kenneth Brown

Following the dissolution of the previous RAF board in July 2025 by Transport Minister Barbara Creecy, a new interim board was appointed in August 2025. Kenneth Brown, a former National Treasury executive and current Development Bank of Southern Africa board member, now chairs the interim board.

Leadership Timeline:

• July 15, 2025: Previous RAF board dissolved due to governance failures
• August 8, 2025: Interim board appointed under Kenneth Brown
• September 2025: New payment strategy implemented
• October 2025: Ongoing reforms and transparency measures

Driver Behavior Crisis: The Root Cause According to Deputy Minister

Deputy Transport Minister Mkhuleko Hlengwa has identified bad driver behavior as a direct contributor to the RAF’s financial burden on the state. Speaking during the SCOPA inquiry, Hlengwa highlighted alarming statistics:

• 12,000 lives lost in road accidents annually
• 137 people injured in road accidents daily
• 45% of fatalities are pedestrians
• Driving under the influence remains a major contributor

“Part of resolving the liability issue is that we need to reduce the road accidents, then we wouldn’t have to be here,” Hlengwa emphasized, pointing to the need for comprehensive road safety reforms alongside financial restructuring.

Legal Victories and Setbacks

The RAF faced a significant legal setback when the High Court in Pretoria dismissed their application for an extension of the 180-day payment moratorium. Judge Jabulani Nyathi struck the application from the court roll on September 2, 2025, citing a lack of urgency.

This ruling means the RAF must now pay claims within 14 calendar days instead of having up to six months, significantly accelerating pressure on the fund to clear outstanding payments.

Financial Position and Future Sustainability

Despite ongoing challenges, the RAF maintains it can meet its obligations over the next 12 months. The fund’s financial position as of March 31, 2025:

• Unpaid claims: R10.4 billion
• Total claims liability: R40.4 billion
• Annual income from fuel levy: Approximately R48 billion
• Total paid across all claims (2024/25): R42.94 billion

Upcoming Reforms: Road Accident Benefit Scheme Bill

The Department of Transport is finalizing the Road Accident Benefit Scheme Bill, which will introduce a no-fault system designed to make it easier for road accident victims to access benefits without costly legal processes.

Proposed Bill Features:

• No-fault compensation system
• Reduced legal costs for claimants
• Requirements for tourist insurance
• Long-term financial sustainability measures
• Elimination of systemic backlogs

Deputy Minister Hlengwa indicated the bill is awaiting Cabinet consultation and is expected to move forward as part of comprehensive RAF reforms.

Transparency and Accountability Measures

The new interim board has implemented several measures to improve transparency and accountability:

• Bi-monthly reports to plaintiff attorneys and suppliers
• Public availability of payment progress reports
• Strengthened monitoring systems for paid and outstanding claims
• Direct engagement protocols for dispute resolution
• Regional manager contact details provided to attorneys

What This Means for Claimants

The interim board has acknowledged the “financial and emotional strain” that delayed payments have caused claimants and their families. The new approach aims to restore confidence in the fund’s claims environment through:

• Faster processing of documentation
• Elimination of administrative delays
• Collaborative approach with legal practitioners
• Priority settlement of older claims

Looking Ahead: Key Developments to Watch

As the Road Accident Fund continues its transformation, several key developments are expected:

1. Continued High-Volume Payments: Monthly payments of R4+ billion to clear the backlog
2. Legislative Reform: Passage of the Road Accident Benefit Scheme Bill
3. System Modernization: Implementation of updated claims management systems
4. Enhanced Oversight: Ongoing SCOPA inquiry results and recommendations
5. Foreign Claims Policy: Potential legislative changes regarding tourist coverage requirements

Conclusion: A Critical Turning Point

The Road Accident Fund’s developments in October 2025 represent a critical turning point for South Africa’s road accident compensation system. With new leadership, accelerated payments, and comprehensive reforms on the horizon, the RAF appears to be moving toward greater efficiency and transparency.

However, significant challenges remain, including the foreign claims controversy, the massive outstanding backlog, and the need for sustainable long-term solutions. The success of these reforms will ultimately be measured by the fund’s ability to provide timely, fair compensation to road accident victims while maintaining financial sustainability.

As the SCOPA inquiry continues and new reforms are implemented, stakeholders across South Africa will be watching closely to see whether these changes can finally bring stability and efficiency to the country’s most important compensation scheme.

Stay updated with the latest Road Accident Fund news and developments as this important story continues to unfold throughout 2025.