Road Accident Fund Update: Latest Developments and Controversies in February 2026

Road Accident Fund Faces Mounting Criticism and Legal Setbacks

The Road Accident Fund (RAF) continues to dominate headlines in February 2026, with mounting criticism from industry leaders and significant legal setbacks highlighting ongoing challenges within South Africa’s road accident compensation system.

AA CEO Calls for Fundamental RAF Reform

In a scathing critique delivered on February 18, 2026, Automobile Association South Africa CEO Bobby Ramagwede accused the government of “throwing money at RAF issues” instead of addressing the root causes of road safety problems. Speaking amid ongoing parliamentary oversight investigations, Ramagwede argued that the RAF is “overfunded but poorly managed” and requires comprehensive reform before any fuel levy reductions are considered.

“At the moment, the approach is to throw money at the problem instead of addressing the root causes,” Ramagwede stated. “Road deaths are a symptom of a broken transport ecosystem; they are not a norm.”

The AA CEO highlighted several critical issues undermining road safety in South Africa:

• Infrastructure deterioration: South African roads are described as being in the worst condition ever
• Vehicle roadworthiness: More than half of vehicles on South African roads are allegedly not roadworthy
• Ineffective law enforcement: Current enforcement focuses on “social debt collection” rather than behavior modification

Supreme Court Dismisses RAF Appeal in Medical Claims Dispute

The Supreme Court of Appeal (SCA) dealt another blow to the RAF on February 11, 2026, dismissing with costs the Fund’s application to reconsider an earlier refusal of leave to appeal in the long-running Sunshine Hospital case.

The case involved Newnet Properties (Pty) Ltd, trading as Sunshine Hospital, a private facility in Benoni that specialized in treating motor vehicle accident victims. The hospital closed after a six-year dispute with the RAF over unpaid medical claims exceeding R300 million in principal amounts, with approximately R21 million in accrued interest.

Key details of the legal dispute include:

• 181 unchallenged court orders against the RAF
• 6,285 summonses issued by the hospital
• Hospital property sold at auction for R21 million
• Controversy over “combined claims” billing system

The SCA found that the RAF’s allegations against the hospital were “vague, unsubstantiated and, in some respects, contradicted by its own forensic report.”

Parliamentary Oversight Intensifies

The Standing Committee on Public Accounts (SCOPA) is moving into the final phase of its RAF oversight inquiry, with committee chairperson Songezo Zibi emphasizing the need for “robust debate” rather than proposals “drafted behind closed doors.”

The parliamentary investigation has revealed several concerning issues:

• The Department of Health is owed between R1.6 billion and R1.7 billion by the RAF
• Introduction of the new RAF 1 claim form requiring claimants to spend up to R100,000 to register claims
• Ongoing payment delays affecting multiple sectors

Executive Compensation Controversy

Adding to the RAF’s woes, recent revelations show that former RAF CEO Collins Letsoalo was paid R9.839 million in the 2025 financial year, including a R2.8 million bonus, despite facing possible criminal charges related to mismanagement at the petrol tax-funded entity.

Fuel Levy and Financial Sustainability Concerns

The RAF’s financial challenges are compounded by concerns about fuel levy sustainability. PwC’s Budget Predictions 2026 report warned that both the general fuel levy and the RAF levy are likely candidates for increases, despite calls for reform.

Currently, the RAF levy stands at R2.18 per liter, with Ramagwede suggesting it could be reduced to R1.90 if proper reforms were implemented, including:

• Improved law enforcement targeting behavior modification
• Enhanced vehicle roadworthiness standards
• Better road infrastructure maintenance
• Transparent fuel levy allocation

Foreigner Compensation Debate

The RAF is also appealing a Gauteng High Court ruling that undocumented foreigners should qualify for road accident compensation. This case is currently before the Supreme Court of Appeal in Bloemfontein, adding another layer of complexity to the Fund’s legal challenges.

Looking Ahead: Reform Imperatives

As the RAF faces mounting pressure from multiple fronts, the need for comprehensive reform becomes increasingly urgent. Deputy Minister of Transport Mkhuleko Hlengwa has stated that “shutting down RAF is not an option,” emphasizing the need for sustainable solutions.

The Transport Committee Chair has noted that while the RAF shows “signs of recovery,” reform efforts must accelerate to address the systemic issues plaguing the organization.

Conclusion

The Road Accident Fund’s challenges in February 2026 highlight the urgent need for comprehensive reform of South Africa’s road accident compensation system. From executive compensation controversies to legal setbacks and mounting debt, the RAF faces a critical juncture that requires decisive action from government and stakeholders.

As parliamentary oversight intensifies and industry leaders call for fundamental changes, the coming months will be crucial in determining whether the RAF can transform from a crisis-ridden entity into an effective tool for road accident victim compensation and road safety improvement.

Stay updated with the latest Road Accident Fund developments and South African road safety news by following our regular coverage of this evolving story.