Road Accident Fund in Crisis: Court Rulings, R500 Billion Debt & What It Means for South Africans (June 2026)

The Road Accident Fund (RAF) — South Africa’s state-run compensation scheme for road accident victims — is making headlines almost daily in 2026. A series of landmark court rulings, mounting financial liabilities, parliamentary scrutiny, and calls for criminal accountability have placed the fund at the centre of one of the country’s most pressing fiscal and governance crises. Here is a comprehensive overview of the latest developments as of June 23, 2026.

1. Supreme Court of Appeal Strikes Down the RAF 1 Form

In one of the most consequential legal decisions of the year, the Supreme Court of Appeal (SCA) on 30 April 2026 dismissed the RAF’s appeal and confirmed that the 2022 RAF 1 claim form was unconstitutional, unlawful, and invalid.

The revised form, introduced in July 2022 via Board Notice 302, imposed significantly stricter documentation requirements on claimants. The SCA found that: the RAF had no statutory authority to prescribe binding claim requirements; the Minister’s approval was procedurally flawed; and the form created administrative barriers that blocked legitimate victims from accessing compensation.

Between July 2022 and March 2025, 72% of pre-assessed RAF 1 claims (75,990 out of 105,039) were rejected. Weekly claim registrations dropped from nearly 2,000 to just over 300. New claims fell from 328,173 in 2018/19 to just 65,732 in 2024/25.

What Happens Now?

Affected claimants have until 30 September 2026 to refile using the reinstated 2008 RAF 1 form. Successfully relodged claims will be backdated to the original submission date, protecting them from prescription. The Minister of Transport has been ordered to develop a lawful replacement form within six months.

2. The Financial Fallout: Is a R500 Billion Liability Looming?

ActionSA MP Alan Beesley has warned that the ruling could expose the RAF to an additional R180 billion in previously unrecorded liabilities, based on estimates of approximately 600,000 rejected claims at an average value of R300,000 each.

The RAF’s existing financial position is already alarming:

• The 2026 Budget Review reported total RAF liabilities at R370.3 billion
• The 2025 Medium-Term Budget Policy Statement projected liabilities rising to R422.6 billion by 2027/28
• RAF board chair Kenneth Brown warned liabilities could increase by a further R300–R400 billion due to accounting changes
• Attorney Gert Nel estimates default court judgments alone represent approximately R500 million in immediately payable obligations from just one law firm

The RAF certainly does not have the money to fund these claims, and they will place the national fiscus under huge, huge pressure. — Alan Beesley, ActionSA MP

3. Government Bailout on the Cards

Legal and financial experts are increasingly vocal: a significant government bailout of the RAF appears inevitable. Attorney Gert Nel stated that National Treasury will have to get involved to cover the additional expenses. With the fund carrying an estimated R500 billion in unqualified contingencies, the question is no longer whether a bailout will be needed — but how large it will be.

4. Foreign Nationals Ruling Adds R390 Million in New Liability

The SCA upheld a High Court ruling that the RAF cannot exclude undocumented foreign nationals from claiming compensation. Transport Minister Barbara Creecy revealed that approximately R390 million in claims previously classified as non-payable could now become payable. The RAF Board is still taking legal advice on whether to seek leave to appeal at the Constitutional Court.

5. SCOPA Inquiry: Criminal Charges and Governance Failures

Parliament’s Standing Committee on Public Accounts (SCOPA) has been conducting an intensive oversight inquiry into the RAF since late 2025. The inquiry has uncovered:

• Nearly R23 billion in excess payments over two years
• A R1 billion media and marketing contracts scandal
• Repeated use of the unlawful claim form despite court orders
• Allegations of corruption between judges and lawyers

SCOPA is now moving to lay criminal charges against the former RAF CEO. The RAF has had four CEOs in seven months.

6. RAF Cannot Benefit From Its Own Delays

In Cele v Road Accident Fund [2026] ZAMPMBHC 2, the High Court dismissed a special plea by the RAF that attempted to use its own administrative delays as a defence. The court ruled that the RAF cannot benefit from its own delay — strengthening the position of claimants whose cases have been stalled.

7. RAF Youth Driver Training and Road Safety Initiatives

Amid the legal and financial turmoil, the RAF released a media statement on 17 June 2026 highlighting its efforts to empower youth through driver training and road safety initiatives. Transport Committee Chair Donald Selamolela expressed cautious optimism, while Deputy Minister Mkhuleko Hlengwa likened the reform process to fixing an aeroplane while airborne.

Key Trends and Takeaways for June 2026

• 2022 RAF 1 Form: Declared unlawful by SCA — 2008 form reinstated
• Rejected claims revival deadline: 30 September 2026
• Estimated additional liability (rejected claims): ~R180 billion
• Foreign nationals ruling liability: ~R390 million
• Total RAF liabilities (Budget 2026): R370.3 billion (rising to R422.6bn by 2027/28)
• Government bailout: Increasingly likely — Treasury involvement expected
• SCOPA inquiry: Ongoing — criminal charges being explored
• RAF leadership: 4th CEO in 7 months

What Should RAF Claimants Do?

If your RAF claim was rejected or not acknowledged between July 2022 and April 2026 due to non-compliance with the 2022 RAF 1 form, you may be entitled to refile your claim using the 2008 RAF 1 form before 30 September 2026. Your claim will be treated as if it was lodged on the original date.

1. Consult a qualified attorney who specialises in RAF claims.
2. Gather all original documentation related to your accident and injuries.
3. Act before the 30 September 2026 deadline to protect your rights.

Note: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified legal professional for advice specific to your situation.

Conclusion

The Road Accident Fund is at a critical crossroads. The SCA’s landmark ruling on the unlawful RAF 1 form has opened the floodgates for hundreds of thousands of previously rejected claims, potentially pushing the fund’s total liabilities beyond R500 billion. Combined with the foreign nationals ruling, ongoing SCOPA scrutiny, governance failures, and leadership instability, the RAF faces an existential financial and institutional crisis.

For South African road accident victims, however, the court rulings represent a significant victory — restoring access to compensation that was unlawfully denied. The coming months will be decisive as Parliament, Treasury, and the courts grapple with how to stabilise the fund while ensuring that victims receive the justice they are owed.

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