Road Accident Fund South Africa: Key Developments, Court Rulings & Reform Plans – June 2026

The Road Accident Fund (RAF) in South Africa continues to dominate headlines in 2026, with a wave of landmark court rulings, sweeping legislative reform proposals, a deepening financial crisis, and unprecedented parliamentary accountability action. Here is a comprehensive roundup of the most important RAF news and developments as of June 2026.

1. Scopa Votes to Criminally Charge Former RAF CEO Collins Letsoalo

In a historic and unprecedented move, Parliament’s Standing Committee on Public Accounts (Scopa) voted on 4 June 2026 — by eight votes in favour and three against — to lay a criminal charge against former Road Accident Fund CEO Collins Letsoalo.

The charge stems from Letsoalo’s refusal to appear before Scopa in response to a summons issued in November 2025 during the committee’s full parliamentary inquiry into the RAF. Letsoalo’s attorneys had dismissed Scopa as a “kangaroo court” and argued the committee lacked jurisdiction — a position Scopa chair Songezo Zibi firmly rejected.

Zibi stressed the profound implications for parliamentary oversight: “If this committee does not proceed, we are paralysing parliament. The next person who is called will simply say: you must chase me, and even when you find me, I will put my hands in my pockets and refuse to come.”

Parliament’s legal advisor confirmed this is the first time in South African parliamentary history that criminal charges have been laid under the Powers, Privileges and Immunities of Parliament Act. The matter has been referred to the National Prosecuting Authority (NPA), which will ultimately decide whether to prosecute.

2. Supreme Court of Appeal Orders RAF to Revive Hundreds of Thousands of Rejected Claims

A landmark ruling by the Supreme Court of Appeal (SCA) has ordered the Road Accident Fund to reinstate hundreds of thousands of claims that were unlawfully rejected under stricter claim submission requirements introduced in 2022.

The RAF had introduced a new RAF1 claim form in July 2022, which required claimants to submit significantly more documentation upfront. This resulted in an estimated 600,000 claims being rejected because they did not meet the new requirements.

The SCA found that these new requirements unfairly raised the bar for making valid claims and ruled that the RAF must allow affected claimants to re-lodge their submissions by the end of September 2026.

Acting CEO of the RAF, Radikwena Phora, said the fund welcomes the judgment and is committed to its full implementation. The RAF will engage with the Minister of Transport to adopt and publish a revised RAF1 Form within six months.

RAF law expert and attorney Gert Nel warned, however, that the fund’s bigger immediate problem is “phantom” claims — claims that were lodged in full compliance with the Act but were not acknowledged by the RAF under the now-overturned form requirements. These have since resulted in thousands of default judgments, with an estimated R4.8 billion immediately payable.

3. RAF Ordered to Pay R2.23 Million to Pedestrian — Punitive Cost Order Issued

The Western Cape High Court issued a punitive cost order against the Road Accident Fund in May 2026, directing it to pay R2.23 million to road accident victim Catherine Yiannakis, who has been living in a long-term care facility since 2018 following a motor vehicle collision.

The RAF had refused to pay a portion of the claim — specifically R552,248.76 already covered by Yiannakis’s medical aid, Discovery Health — despite binding full court judgments and SCA confirmation of the RAF’s liability.

Acting Judge M Louw criticised the RAF’s conduct as “frivolous” and found that it had become a “recurring practice for the RAF to attempt to circumvent court orders and even statutory provisions in order to avoid or diminish its liability.”

The judge noted: “It is wholly unacceptable that the RAF persists in defending these hopeless matters, thereby wasting public resources, driving up legal costs for both the RAF and claimants, and compelling claimants to incur unnecessary expenses to enforce rights already established.”

4. Minister Creecy Revives Road Accident Benefit Scheme (RABS) to Replace the RAF

Transport Minister Barbara Creecy has confirmed that the government is actively working to replace the Road Accident Fund with a new Road Accident Benefit Scheme (RABS) — a no-fault compensation system first proposed over two decades ago.

Deputy Transport Minister Mkhuleko Hlengwa announced that the RABS Bill will be introduced to Parliament in 2026. The proposed framework provides for defined, structured benefits on a no-fault basis, meaning compensation would no longer depend on proving fault in an accident.

The urgency of reform is underscored by the RAF’s dire financial position:

• The RAF is technically insolvent, with liabilities exceeding R518 billion.
• For years, the true depth of the crisis was masked by creative accounting — management unlawfully transitioned away from established insurance accounting standards (IFRS 4), effectively erasing approximately R293 billion in liabilities from the balance sheet.
• The RAF is funded almost entirely through a fuel levy of R2.25 per litre of petrol and diesel — a model under increasing strain as electric and hybrid vehicles reduce fuel consumption and levy revenue.

Minister Creecy acknowledged the public’s frustration: “The Road Accident Fund portion of the fuel levy has come under public scrutiny.” She added that the department is researching a hybrid funding model incorporating both private and public contributions to reduce the burden on the fiscus.

The proposed RABS has faced criticism from the Law Society of South Africa (LSSA), which argues that a no-fault scheme would deprive innocent victims of their common law rights and could create a new class of indigent persons by replacing lump-sum compensation with capped monthly pensions.

5. SCA Rules Foreign Nationals Entitled to RAF Claims

The Supreme Court of Appeal ruled in April 2026 that foreign nationals are entitled to claim and receive benefits from the Road Accident Fund. The ruling upheld a High Court finding that the term “any person” in the RAF legislation does not exclude foreign nationals.

Transport Committee Chairperson Donald Selamolela welcomed the ruling, stating: “The RAF funding is intended for victims of road accidents, a purpose for which no one should interfere based on nationality.”

The ruling has sparked political debate, with some parties calling for RAF payouts to be limited to South African citizens. Selamolela noted that legislative amendments could explore models used in neighbouring countries like Botswana and Namibia, where foreign nationals are required to take out short-term insurance cover before entering the country.

6. Signs of Recovery — But Reform Must Accelerate

Despite the many challenges, the Portfolio Committee on Transport has expressed cautious optimism about the RAF’s trajectory. Chairperson Selamolela noted in February 2026 that “there is work happening to improve governance and stabilise the operation of RAF,” and that improved payment methods and systems are being put in place.

Deputy Minister Hlengwa likened the reform process to “fixing an aeroplane while airborne” — acknowledging the complexity of restructuring a deeply troubled institution while it continues to serve millions of South Africans.

Key Trends and Takeaways

• Financial crisis deepening: With liabilities exceeding R518 billion and a structurally shrinking fuel levy tax base, the RAF faces an existential funding challenge.
• Courts holding the RAF accountable: Multiple high court and SCA rulings are forcing the RAF to honour its obligations to claimants, including punitive cost orders for frivolous defences.
• Legislative reform on the horizon: The RABS Bill is expected to be tabled in Parliament in 2026, representing the most significant overhaul of road accident compensation in South Africa’s history.
• Parliamentary oversight strengthened: Scopa’s unprecedented decision to criminally charge former CEO Collins Letsoalo signals a new era of accountability for state entities.
• Claimants urged to act: With the SCA ruling opening the door for re-lodging of previously rejected claims, affected road accident victims should consult a qualified RAF attorney before the September 2026 deadline.

What Should RAF Claimants Do?

If your RAF claim was previously rejected due to the new RAF1 form requirements, you may be entitled to re-lodge your claim. Key steps include:

1. Gather proof that your original claim was submitted within three years of the accident.
2. Compile all relevant documents relating to the accident and your injuries.
3. Consult a qualified RAF attorney to guide you through the re-submission process before the end of September 2026 deadline.

The Road Accident Fund remains one of South Africa’s most complex and contested institutions. Stay informed and check back daily for the latest RAF news and updates.