Road Accident Fund (RAF) in Crisis: Key Developments, Court Rulings and Reform Updates – June 2026

Introduction: South Africa’s Road Accident Fund Under the Spotlight

South Africa’s Road Accident Fund (RAF) continues to dominate headlines in 2026, as the embattled state entity faces a perfect storm of financial instability, governance failures, landmark court rulings, and mounting pressure from Parliament. For road accident victims, legal practitioners, and taxpayers alike, the RAF’s ongoing crisis has far-reaching consequences. Here is a comprehensive roundup of the most important RAF news and developments as of June 2026.

1. SCA Ruling Revives Hundreds of Thousands of Rejected RAF Claims

One of the most significant legal developments of 2026 came on 30 April 2026, when the Supreme Court of Appeal (SCA) handed down a landmark judgment that effectively revived potentially hundreds of thousands of previously rejected RAF claims.

The ruling centred on the 2022 RAF 1 claim form, which the RAF had introduced with stricter documentation requirements. The SCA found that neither the RAF nor the Minister of Transport had the legal authority to impose these requirements in the manner they did. The revised form was declared unlawful, and the system reverted to the original 2008 RAF 1 form.

What This Means for Claimants

• Claimants whose submissions were rejected or not acknowledged under the 2022 regime may resubmit their claims by 30 September 2026.
• Successfully relodged claims will be treated as if they were submitted on the original date, protecting them from prescription.
• The Minister of Transport is required to develop and publish a revised RAF 1 form within six months, following a proper public participation process.

The Financial Fallout

The financial implications are staggering. Between July 2022 and March 2025, 72% of 105,039 RAF 1 claims were rejected under the stricter regime. ActionSA MP Alan Beesley warned that the ruling could expose the RAF to liabilities of up to R180 billion, based on an estimated 600,000 affected claims at an average value of R300,000 each. Combined with existing unrecorded liabilities, total RAF exposure could exceed R500 billion.

2. SCOPA Votes to Criminally Charge Former RAF CEO Collins Letsoalo

In a dramatic escalation of parliamentary accountability, the Standing Committee on Public Accounts (SCOPA) voted in June 2026 to recommend criminal charges against former RAF CEO Collins Letsoalo and other former board members. This follows a lengthy SCOPA investigation into governance failures, financial mismanagement, and controversial operational decisions made during Letsoalo’s tenure.

The committee’s findings pointed to serious irregularities, including:

• Procurement irregularities and poor internal controls
• Investigations into alleged R1 billion in media contracts
• Failure to maintain proper financial records and accountability
• Decisions that exposed the RAF to fruitless and wasteful expenditure

3. Medico-Legal Experts Owed Over R121 Million – Claims System in Chaos

A damning report presented to SCOPA in June 2026 revealed that medico-legal experts are owed more than R121 million by the RAF for work already completed and used in court proceedings. The evidence, presented by Cecilia Margaretha Minnie of MMB Made Easy, painted a picture of systemic dysfunction:

• 35 of her clients alone were owed R41.29 million, with some claims dating back to 2014.
• A broader group of 47 medical experts was owed more than R120.75 million, excluding interest.
• The estate of one late orthopaedic surgeon was allegedly owed more than R14.5 million.
• Invoices were reportedly found strewn on office floors at the RAF.

Parliamentary members did not hide their frustration. ActionSA MP Alan Beesley described the RAF as a wrecking ball, while ANC MP Gijimani Skosana said the entity had been run like a spaza shop. SCOPA Chairperson Songezo Zibi noted that a Gauteng High Court judge had urged MPs to attend RAF court proceedings to witness firsthand how poorly the Fund was being represented.

4. Court Action Launched Over RAF’s Failure to Pay 430+ Finalised Claims

As recently as 18 June 2026, de Broglio Attorneys announced that court action has been launched against the RAF for its failure to pay more than 430 finalised claims. This is part of a broader pattern of the RAF failing to honour court orders and settled claims, leaving accident victims without the compensation they are legally entitled to.

This follows earlier court orders compelling the RAF to pay:

• 209 road accident victims R47 million within 30 days (April 2026)
• Sunshine Hospital R92 million within seven days (March 2026)
• R2.2 million to a pedestrian, with a punitive cost order attached (May 2026)

5. RAF Faces Possible Government Bailout Amid R180 Billion Shortfall

The RAF’s financial position has deteriorated to the point where a major government bailout is increasingly likely, according to Moneyweb reporting from May 2026. ActionSA has called on the Finance Minister to explain the R180 billion RAF shortfall, noting that approximately 600,000 claims were rejected as a result of the unlawful 2022 RAF 1 form.

The Department of Transport is reportedly considering both private and public funding contributions to stabilise the RAF. One proposal under discussion is a new RAF fee linked to vehicle licence renewals, which would see motorists paying an additional charge when renewing their licence discs.

6. Statutory Cap for Loss of Income Claims Increased

On a more positive note for claimants, as of 31 January 2026, the RAF officially increased the statutory cap for loss of income and loss of support claims. This adjustment means that victims who suffered income losses as a result of road accidents may now claim higher compensation amounts under the updated limits.

7. Transport Committee: RAF Shows Signs of Recovery, But Reform Must Accelerate

Despite the litany of challenges, the Chairperson of the Portfolio Committee on Transport, Mr Donald Selamolela, expressed cautious optimism in February 2026, stating that the RAF is on the road to recovery. He acknowledged that the entity remains challenged by historical factors but said the committee was satisfied that governance improvements were underway.

Deputy Minister of Transport Mr Mkhuleko Hlengwa likened the reform process to fixing an aeroplane while airborne, emphasising that direct claims processing is an immediate priority. The committee called on the Department to urgently review RAF legislation to close existing loopholes.

8. Foreign Nationals Cannot Be Excluded from RAF Claims – SCA Ruling

In April 2026, the SCA ruled that undocumented foreign nationals cannot be excluded from claiming road accident compensation from the RAF. The Transport Committee Chairperson welcomed the ruling, stating that RAF funding is intended for all victims of road accidents, regardless of nationality. The ATM party had previously called for RAF payouts to be limited to South African citizens only.

9. Proposal to Scrap the RAF and Replace It with a New Insurance System

Amid the ongoing crisis, a new proposal has emerged to scrap the Road Accident Fund entirely and replace it with a compulsory third-party insurance system. Proponents argue that a private insurance-based model would be more efficient, financially sustainable, and better able to serve accident victims. This proposal is likely to gain traction as the RAF’s financial and operational challenges continue to mount.

10. RAF Settlement Drive at Ngwelezane Hospital

On a community-focused note, the RAF hosted the second instalment of its Settlement Drive at Ngwelezane Hospital on 20 February 2026. These settlement drives are part of the RAF’s efforts to fast-track the resolution of outstanding claims and bring compensation directly to claimants, particularly in underserved communities.

Key Trends and Analysis: What Does This Mean for RAF Claimants?

Financial Instability Remains the Core Challenge

The RAF carries an estimated R500 billion in total liabilities, funded primarily by a fuel levy of R2.25 per litre. The SCA ruling on the 2022 RAF 1 form has dramatically expanded the pool of potential claimants, making a government bailout increasingly inevitable.

Governance Failures Are Being Addressed

The SCOPA investigation and the recommendation to criminally charge former leadership signals a new era of accountability. However, systemic issues — from unpaid medico-legal experts to broken claims management systems — will take years to resolve.

Legal Action Is Escalating

The volume of court orders against the RAF is increasing, reflecting a Fund that is unable to meet its obligations voluntarily. Claimants and service providers are increasingly turning to litigation as the only reliable mechanism to secure payment.

Reform Is Underway But Slow

Legislative reform, new funding models, and operational improvements are all on the table. However, the pace of change remains a concern, with Parliament repeatedly urging the Department of Transport to accelerate its efforts.

What Should RAF Claimants Do Right Now?

If you were involved in a road accident and your RAF claim was previously rejected, here is what you need to know:

1. Act before 30 September 2026: If your claim was rejected under the 2022 RAF 1 form, you have until this date to resubmit using the 2008 RAF 1 form.
2. Consult a qualified attorney: Given the complexity of the RAF claims process, it is strongly advisable to work with an experienced personal injury or RAF claims attorney.
3. Keep all documentation: Preserve all medical records, police reports, and correspondence related to your accident and claim.
4. Monitor the RAF’s operating model updates: The RAF has committed to settling new claims within 120 days under its new operating model.

Conclusion

The Road Accident Fund remains one of South Africa’s most complex and controversial public entities. June 2026 has brought a convergence of legal, financial, and governance crises that demand urgent attention from government, Parliament, and the courts. While there are tentative signs of recovery and reform, the scale of the challenges — from a potential R500 billion liability to unpaid medico-legal experts and hundreds of thousands of rejected claims — means that the road ahead remains long and difficult.

For road accident victims, the most important message is this: know your rights, act before the September 2026 deadline, and seek professional legal advice. The RAF exists to serve you — and with the right support, you can navigate its complex systems to secure the compensation you deserve.

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