Road Accident Fund (RAF) South Africa: Key Updates, Court Rulings & Financial Crisis – June 2026

Published: 29 June 2026 | Category: Road Accident Fund News

South Africa’s Road Accident Fund (RAF) continues to dominate headlines in 2026, with mounting financial pressures, landmark court rulings, parliamentary scrutiny, and ongoing reform efforts shaping the future of the country’s primary road accident compensation body. Here is a comprehensive roundup of the most important RAF developments you need to know right now.

1. The RAF’s Financial Crisis: A R400 Billion Time Bomb

The Road Accident Fund is facing what analysts are calling South Africa’s next major state-owned enterprise (SOE) crisis. According to a detailed analysis published by Daily Maverick in March 2026, the RAF’s contingent liabilities could exceed R400 billion, threatening to blow a massive hole in the national fiscus.

Key financial facts:

• Current liabilities stand at approximately R100 billion, with minimal cash reserves.
• Long-term provisions are expected to rise from R387 billion in the current financial year to R426 billion by 2028/29, according to the National Treasury’s 2026 Budget Review.
• The RAF receives approximately R50 billion per year from fuel levies, but overheads consume around R7 billion, leaving only R43 billion for payouts.
• The fund has more than 430,000 outstanding claims, some dating back over a decade.
• The RAF previously processed 250,000 claims per year but now handles only 70,000 annually.

Scopa chairperson Songezo Zibi described the situation bluntly: “The RAF is technically insolvent.” He warned that if the RAF could somehow finalise all its claims overnight, it would collapse. The fund’s debt exposure is described as one of the largest on South Africa’s balance sheet — nearly one-fifth of the national government’s entire annual budget.

ActionSA MP Alan Beesley has called for urgent parliamentary accountability, noting that the former CEO earned R10 million per year (including incentives) while the fund collapsed under his watch. Beesley has also demanded that the Special Investigation Unit (SIU) accelerate its probe into the RAF.

2. Government Bailout on the Horizon?

Reports from Moneyweb indicate that it is increasingly likely the RAF will require a significant government bailout. ActionSA has called on Finance Minister Enoch Godongwana to explain to Parliament how the national fiscus plans to carry the RAF’s liabilities, which include a reported R180 billion shortfall.

Potential solutions being explored include:

• Capping payouts for future loss of income and medical expenses.
• Paying compensation in staggered amounts rather than lump sums to improve liquidity.
• Appointing a panel of arbitrators to resolve disputes without going to court.
• Establishing an independent medical panel to assess injuries, replacing the current costly dual-expert system.

New legislation to implement these changes is unlikely to come into effect before 2027, leaving the fund in a precarious position in the interim.

3. Supreme Court of Appeal Orders RAF to Reopen Hundreds of Thousands of Rejected Claims

In a landmark ruling, the Supreme Court of Appeal (SCA) ordered the RAF to reopen hundreds of thousands of previously rejected claims. The RAF had been rejecting claims that did not comply with new administrative requirements — including a controversial directive requiring claims to be submitted by registered mail — while simultaneously refusing to acknowledge receipt of those claims.

The RAF’s own media statement from 12 May 2026 addressed the SCA’s judgment against the RAF 1 Form, acknowledging the ruling and its implications for the fund’s claims backlog.

This ruling is expected to add an unknown but potentially enormous number of claims to the RAF’s already strained books. Scopa’s Zibi estimated the additional liability could range from R100 billion to R150 billion or more.

4. Court Rules RAF Must Compensate Undocumented Foreign Nationals

In another significant legal development, the Supreme Court of Appeal ruled in April 2026 that the RAF must compensate all road accident victims, including undocumented foreign nationals. The court found that the phrase “any person” in the RAF Act includes undocumented foreigners.

Transport Minister Barbara Creecy revealed that this ruling could expose the RAF to at least R390 million in additional liability, as claims previously classified as non-payable on the Requested Not Yet Paid (RNYP) register now become payable.

The ruling has sparked political debate, with the African Transformation Movement (ATM) calling for RAF payouts to be limited to South African citizens only. Parliament has debated the issue, and the RAF Board is still taking legal advice on whether to seek leave to appeal the ruling at the Constitutional Court.

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

In May 2026, the Western Cape High Court issued a punitive cost order against the RAF and directed it to pay road accident victim Catherine Yiannakis R2.23 million for past hospital and medical expenses.

The case highlighted a recurring pattern of the RAF refusing to pay claims where a claimant’s medical aid had already covered costs — despite binding court judgments confirming the RAF’s liability. Acting Judge M Louw criticised the RAF’s conduct as “frivolous” and “wholly unacceptable,” noting that the fund’s approach:

• Wastes public resources.
• Drives up legal costs for both the RAF and claimants.
• Contributes significantly to delays and backlogs.

Yiannakis has been living in a long-term care facility for nearly eight years following a motor vehicle collision in February 2018. The RAF had refused to pay R552,248.76 in costs already covered by Discovery Health Medical Scheme, despite multiple court orders confirming its liability.

6. Former CEO Collins Letsoalo Under SIU Investigation

The Special Investigation Unit (SIU) probe into former RAF CEO Collins Letsoalo — who served from 2020 to 2025 — continues to be a focal point of parliamentary scrutiny. Key allegations include:

• Involvement in a R79 million lease in Johannesburg.
• Discovery of alternative RAF bank accounts containing between R1 million and R100 million.
• A lavish R4 million staff party, including R40,000 spent on executive drinks.
• Senior executives allegedly manipulating procurement processes and splitting invoices to bypass approval limits.
• The RAF accumulating more than R15 billion in default judgments.
• Five consecutive years of disclaimed or adverse audit opinions from the Auditor-General.

Letsoalo was placed on special leave in May 2025 and his contract ended in August 2025. He defied a parliamentary subpoena to appear before Scopa. Transport Minister Barbara Creecy has written to President Cyril Ramaphosa requesting an expansion of the SIU’s investigation scope.

7. RAF Settlement Drives and Community Outreach

On a more positive note, the RAF has been conducting Settlement Drives at hospitals across South Africa to fast-track the resolution of outstanding claims. In February 2026, the RAF hosted the second instalment of its Settlement Drive at Ngwelezane Hospital in KwaZulu-Natal.

The RAF also released a media statement on 17 June 2026 highlighting its efforts to empower youth through driver training and road safety initiatives — part of its broader mandate to reduce road accidents and the resulting claims burden.

8. Mandatory Mediation Declared a Failure

A directive making mediation mandatory for all civil trials in Gauteng — intended to reduce court backlogs, particularly RAF litigation — has been widely criticised as a failure. Advocate Justin Erasmus, chair of the Personal Injury Plaintiff Lawyers Association, has lodged a high court application to set aside the directive.

Erasmus noted that Gauteng courts deal with approximately 300 RAF matters per week, each taking about a day, with only 25 state attorneys available to handle the workload. Trial dates in some courts are reportedly being set as far out as November 2033.

9. Transport Committee: Signs of Recovery, But Reform Must Accelerate

Despite the grim financial picture, the Parliamentary Transport Committee chairperson noted in February 2026 that the RAF is showing signs of recovery, with reform efforts underway under the new interim board appointed by Transport Minister Barbara Creecy in August 2025.

The committee welcomed the SCA ruling on claims by foreign nationals, emphasising that “RAF funding is intended for victims of road accidents, a purpose for which no one should interfere based on nationality.”

What Does This Mean for RAF Claimants?

If you have been injured in a road accident in South Africa, here is what the current situation means for you:

• Delays are likely to continue as the RAF works through its backlog of over 430,000 claims.
• If your claim was previously rejected due to administrative requirements (such as the RAF 1 Form), the SCA ruling may entitle you to have your claim reconsidered.
• The RAF is legally obligated to pay your past medical expenses, even if your medical aid covered them — despite the fund’s attempts to avoid this liability.
• Seek legal advice from a qualified personal injury attorney to ensure your rights are protected.
• Keep all documentation related to your accident, injuries, and medical treatment.

Conclusion: The RAF at a Crossroads

The Road Accident Fund stands at a critical crossroads in 2026. With liabilities potentially exceeding R400 billion, a backlog of hundreds of thousands of claims, ongoing corruption investigations, and landmark court rulings reshaping its obligations, the RAF faces an existential challenge.

The government, Parliament, and the courts are all grappling with how to make the fund viable while ensuring that road accident victims — the people the RAF was created to serve — receive the compensation they are legally entitled to. Legislative reforms, potential government bailouts, and structural changes to how claims are processed and paid are all on the table.

For South Africans who rely on the RAF for compensation after road accidents, staying informed about these developments is essential. We will continue to monitor and report on all major RAF news as it unfolds.

Sources: Daily Maverick, IOL Business, Moneyweb, EWN, RAF Media Center, Parliament of South Africa, Africa24TV

Last updated: 29 June 2026