Road Accident Fund in Crisis: Court Rulings, Rejected Claims & the R400bn Debt Bomb — Latest News (May 2026)

The Road Accident Fund (RAF) continues to dominate South African headlines in 2026, with a series of landmark court rulings, a deepening financial crisis, and growing calls for systemic reform. From hundreds of thousands of rejected claims being reinstated to a Supreme Court ruling on foreign nationals, here is everything you need to know about the latest RAF developments as of May 2026.

1. Court Orders RAF to Reinstate Up to 600,000 Rejected Claims

In one of the most significant RAF rulings of the year, the Supreme Court of Appeal (SCA) found that stricter claim requirements introduced in July 2022 — via a new RAF 1 Form published by the Minister of Transport — were unlawful and unfair. The new requirements had raised the bar for lodging valid claims, resulting in an estimated 600,000 claims being rejected because claimants could not comply with the more onerous documentation requirements at the time of submission.

The Pretoria High Court had previously struck down the directives, but the RAF appealed. The SCA has now confirmed that the new requirements unfairly obstructed road accident victims from accessing compensation, and has ordered the RAF to allow affected claimants to re-lodge their claims by 30 September 2026.

Acting CEO of the RAF, Radikwena Phora, said the fund welcomes the judgment as it provides clarity on the RAF 1 Form matter. The RAF is currently studying the ruling in detail and has committed to engaging with the Minister of Transport to adopt and publish a revised RAF 1 Form within six months.

RAF law expert and attorney Gert Nel warned that the bigger immediate issue is so-called “phantom” claims — claims that were lodged in full compliance with the RAF Act but were not acknowledged by the fund because they did not adhere to the now-overturned RAF 1 Form. These claims have since secured default judgments estimated at R4.8 billion that are now immediately payable.

“The RAF needs to start paying — some of these victims had already died in the process of waiting.” — Gert Nel, RAF attorney

2. SCA Rules RAF Must Compensate All — Including Undocumented Foreigners

In a separate landmark ruling in April 2026, the Supreme Court of Appeal dismissed two appeals by the RAF and ruled that the fund cannot refuse to pay compensation to people based on their immigration status — including undocumented illegal foreigners.

The RAF had argued that the phrase “any person” in section 17(1) of the RAF Act should be interpreted to exclude illegal foreigners, citing the Immigration Act. However, Judge of Appeal Ashton Schippers, writing for a unanimous full bench, held that the plain language of section 17(1) could not be construed as excluding illegal foreigners.

“Unlike other legislation which specifically excludes foreign nationals from its ambit — such as the Social Assistance Act, which limits beneficiaries to South African citizens, permanent residents and refugees — the RAF Act contains no such limitation,” the court noted.

The ruling has sparked political debate, with the Portfolio Committee on Transport calling for the expedited reform of the RAF Act to manage the financial implications. Some political parties have proposed mandatory medical insurance for all foreign visitors entering South Africa.

3. The R400 Billion Debt Crisis: SA’s Next Big SOE Timebomb

The RAF’s financial situation has been described by analysts and parliamentarians as nothing short of catastrophic. According to the National Treasury’s 2026 Budget Review, the RAF’s long-term provisions are expected to rise from R387 billion in the current financial year to R426 billion by 2028/29.

Scopa chairperson Songezo Zibi has described the RAF as “technically insolvent”, noting that the fund receives approximately R50 billion per year from fuel levies, spends about R7 billion on overheads, and pays out around R43 billion in claims — leaving virtually no buffer for its mounting liabilities.

Key financial facts:

• Current liabilities: approximately R100 billion
• Total contingent liabilities: potentially above R400 billion
• Outstanding claims backlog: over 430,000 claims, some dating back more than a decade
• Default judgments accumulated: more than R15 billion
• Claims processing: the fund now handles only 70,000 claims per year, down from 250,000

“You have layer on layer of problems,” said Zibi. “The fiscus can’t deal with that.”

ActionSA MP Alan Beesley has been vocal in Parliament, calling the situation “flabbergasting” and noting that the RAF’s total liability of nearly R500 billion represents almost one-fifth of the national government’s entire annual budget.

4. Former CEO Collins Letsoalo Under SIU Investigation

Much of the RAF’s dysfunction has been attributed to the tenure of former CEO Collins Letsoalo, who led the fund from 2020 to 2025. Letsoalo was placed on special leave in May 2025 pending a Special Investigation Unit (SIU) probe, and his contract ended in August 2025.

Allegations against Letsoalo and his administration include:

• Implication in a R79 million lease in Johannesburg
• A lavish R4 million staff party, including R40,000 spent on executive drinks
• A 200-bed Johannesburg hospital closed after the RAF failed to pay more than R300 million in outstanding debt
• Senior executives accused of manipulating procurement processes and splitting invoices to bypass approval limits
• The RAF litigating against the Auditor-General for two years
• Five consecutive years of disclaimed or adverse audit opinions
• SIU uncovering RAF bank accounts with between R1 million and R100 million in undisclosed funds

Transport Minister Barbara Creecy has written to President Cyril Ramaphosa requesting an expansion of the SIU’s investigation scope. An interim RAF board was appointed in August 2025 to address the backlog and restore governance.

5. Actuarial Society Calls for Hybrid Compensation Model

The Actuarial Society of South Africa (ASSA) has released a major research paper in April 2026 proposing a hybrid compensation model to replace the current failing system. The study compared three options: the current RAF system, the proposed no-fault Road Accident Benefit Scheme (RABS), and compulsory third-party insurance offered by private insurers.

ASSA concluded that none of the three systems are viable on their own, and recommended a hybrid solution combining elements of all three. One proposed model would provide:

• Basic no-fault benefits for medical care and rehabilitation (publicly administered)
• Fault-based liability insurance for additional damages (privately administered)
• A public-private partnership under strong regulatory oversight

Actuary George Schwalb, part of the ASSA research team, noted that the current system is unsustainable, with some claims from accidents that occurred more than 20 years ago only now proceeding to trial.

6. Courts Slam RAF for Delays; Gauteng Faces Trial Backlog Until 2033

The RAF’s operational failures are creating a crisis in South Africa’s courts. Advocate Justin Erasmus, chair of the Personal Injury Plaintiff Lawyers Association, has lodged a high court application to set aside a Gauteng directive making mediation mandatory for all civil trials — a directive intended to reduce court backlogs but which has instead worsened delays.

Erasmus noted that Gauteng courts deal with approximately 300 RAF matters per week, with only 25 state attorneys available to handle the workload. If you can secure a trial date today, the earliest available slot is November 2033.

Meanwhile, the RAF has been repeatedly excoriated by courts for failing to appear at hearings, delaying proceedings, and accumulating default judgments. Personal injury lawyers report receiving as little as 2% of what the RAF owes their clients in monthly payments.

What This Means for RAF Claimants

If you or a loved one has been involved in a road accident in South Africa, here is what the latest developments mean for you:

• Rejected claims: If your RAF claim was rejected between July 2022 and March 2025 due to the new RAF 1 Form requirements, you may be eligible to re-lodge your claim. The deadline for resubmission is 30 September 2026. Consult a qualified RAF attorney as soon as possible.
• Foreign nationals: The SCA ruling confirms that all persons — regardless of immigration status — are entitled to claim from the RAF for injuries sustained in road accidents in South Africa.
• Delays: Claimants should be aware that the RAF is severely backlogged. Engaging an experienced personal injury attorney early is critical to protecting your rights and ensuring your claim is properly documented.
• Payments: The interim RAF board has announced steps to speed up outstanding payments, including a Settlement Drive initiative at hospitals across the country.

Looking Ahead: RAF Reform on the Horizon

Parliament’s Standing Committee on Public Accounts (Scopa) is finalising its report on the RAF, expected to be released imminently. Legal opinions are being sought on how to amend the law to allow the RAF to cap payouts for future loss of income and medical expenses, and to pay in staggered amounts rather than lump sums — a change that could significantly improve the fund’s liquidity.

However, new legislation is unlikely to come into effect before 2027, meaning the current crisis will continue to deepen in the short term. The RAF’s situation remains one of the most pressing fiscal and social justice challenges facing South Africa today.

Stay informed about the latest Road Accident Fund news and updates by bookmarking this page. If you need assistance with an RAF claim, consult a qualified personal injury attorney in South Africa.