Road Accident Fund Crisis Deepens: SCOPA Probe Reveals ‘Insane’ Legal Costs and 432,000 Outstanding Claims

RAF Under Parliamentary Scrutiny as Crisis Reaches Breaking Point

South Africa’s Road Accident Fund (RAF) is facing unprecedented scrutiny as Parliament’s Standing Committee on Public Accounts (SCOPA) continues its investigation into widespread maladministration at the state entity. The latest developments reveal a system in complete disarray, with over 432,000 outstanding claims and what SCOPA chairperson Songezo Zibi describes as “insane” legal costs that are crippling the fund.

SCOPA Investigation Exposes Massive Financial Irregularities

The parliamentary inquiry has uncovered shocking details about the RAF’s financial management. According to testimony presented to SCOPA, one law firm alone made over half a billion rand in legal fees over a five-year period before paying claims to accident victims. This has led to speculation that the fund has been “captured” by big law firms who prioritize their fees over victim compensation.

SCOPA chairperson Songezo Zibi expressed his frustration with the current system, stating: “I see a system that is completely broken, from the legislation itself all the way, and it is busy breaking everything. It’s breaking the courts, it’s breaking everything.”

Key Statistics Revealed:

• Over 432,000 outstanding claims as of 2023/2024
• Some law firms handling 2,000 claims each
• Internal assessors managing 4,000 cases each
• Potential backlog could reach 700,000 cases if rejected claims are reinstated

Former RAF Board Defends Controversial CEO Appointment

In a dramatic turn of events on January 28, 2026, former RAF board members appeared before SCOPA to defend their decision to appoint Collins Letsoalo as CEO in 2020. Despite testimony from trade union NUMSA labeling Letsoalo “a monster” who waged a “reign of terror” against employees, former board members maintained their position.

Former Deputy RAF chairperson Nomonde Mabuya-Moleole told the committee: “I had no doubt that he would be the right person. His depth and understanding of the RAF Act was the most outstanding thing of that interview.”

However, Letsoalo has refused to appear before the inquiry, claiming it is acting outside its powers.

Calls for Dedicated RAF Tribunal Gain Momentum

As the crisis deepens, legal experts are calling for radical reform. Assistant State Attorney in Johannesburg, Simbongile Siyali, has proposed establishing a dedicated RAF tribunal to handle the massive backlog of cases currently clogging South Africa’s court system.

In an article published in the Law Society of South Africa’s magazine De Rebus, Siyali argued: “The establishment of a specialised tribunal dedicated exclusively to RAF matters emerges not merely as an administrative convenience but as a constitutional necessity.”

Benefits of a Specialized RAF Tribunal:

• Reduced court backlogs
• Faster claim resolution
• Specialized expertise in personal injury law
• Cost-effective processing
• Standardized damage assessments

Political support for the tribunal proposal is growing, with ActionSA MP Alan Beesley stating that the RAF “is completely broken” and supporting the establishment of a specialized tribunal.

Legal Costs Spiral Out of Control

The investigation has revealed that legal costs are disproportionately high compared to actual compensation paid to victims. Evidence suggests that some lawyers prefer taking cases to court to increase their fees rather than settling claims quickly.

Zibi emphasized the severity of the situation: “There had to be a way to reduce the ‘insane’ amount of money being spent on lawyers representing accident victims.”

The Legal Practice Council acknowledged that big law firms have the “muscle to mobilize more clients” and agreed that litigation should be avoided, with claims resolved within the prescribed 120-day period.

Recent Court Victories for Claimants

Despite the systemic issues, some accident victims are achieving success through the courts. On January 10, 2026, the Johannesburg High Court ordered the RAF to pay over R2 million in damages to a 35-year-old Malawian accident victim, demonstrating that the system can work when properly managed.

The Human Cost of RAF Dysfunction

Behind the statistics and legal battles are real people suffering from the RAF’s failures. Many claimants are individuals who have suffered serious injuries, lost income, or lost breadwinners in accidents. The mounting backlog means these vulnerable people wait years for compensation they desperately need.

As Siyali noted: “The huge RAF case backlog had profound human consequences. Many RAF claimants are individuals who have suffered serious bodily injuries, loss of income or the death of a breadwinner.”

What’s Next for the RAF?

The SCOPA inquiry is nearing completion, with RAF board members, ministers, and deputy ministers expected to appear before the committee in the coming weeks. The investigation’s findings could lead to significant reforms or even a complete overhaul of the current system.

Key stakeholders, including the Organisation Undoing Tax Abuse (OUTA), support the establishment of a dedicated RAF tribunal. OUTA CEO Wayne Duvenage stated: “We believe that the RAF entity has been badly managed and fraught with political interference over the past decade to 15 years.”

Conclusion: A System in Need of Urgent Reform

The Road Accident Fund crisis represents one of South Africa’s most pressing governance challenges. With hundreds of thousands of claims outstanding, spiraling legal costs, and a system that appears to benefit lawyers more than victims, urgent reform is needed.

The proposed RAF tribunal offers hope for a more efficient, fair system that could deliver justice to accident victims while reducing the burden on South Africa’s courts. However, without decisive action from government and parliament, the RAF’s problems will only continue to worsen, leaving vulnerable South Africans without the compensation they desperately need.

As the SCOPA investigation concludes, all eyes will be on government’s response to the committee’s recommendations. The time for half-measures has passed – the RAF needs comprehensive reform to fulfill its mandate of supporting accident victims across South Africa.