Road Accident Fund in Crisis: R21.7 Billion Unpaid, Legal Battles and Funding Reforms – July 2026 Update

The Road Accident Fund (RAF) in South Africa continues to make headlines in July 2026, as the embattled state entity grapples with a staggering R21.7 billion in unpaid claims, mounting court orders, criminal charges against its former CEO, and a government-led review of its entire funding model. Here is a comprehensive roundup of the latest developments affecting road accident victims, motorists, and the broader South African public.

1. R21.7 Billion in Finalised Claims Still Unpaid

In a bombshell parliamentary reply, Transport Minister Barbara Creecy revealed that as of 28 June 2026, the RAF Requested Not Yet Paid (RNYP) Claims Register shows 37,622 finalised claims worth R21.76 billion that have not yet been paid out to claimants. These claims involve 47,949 individual payment transactions.

The disclosure came after ActionSA MP Alan Beesley asked whether the RAF maintained an accurate record of all finalised but unpaid claims. The Minister confirmed the register exists and is actively tracked.

Why Are Claims Not Being Paid?

• Outstanding compliance checks – affecting claims worth nearly R11 billion
• Verification delays – affecting claims worth more than R9.1 billion
• Missing documents – affecting claims worth approximately R1.7 billion
• Payments not yet reaching their due dates

Alarmingly, 36,442 of the outstanding claims date back to the period between 2007 and 2026, highlighting the deep-rooted systemic failures within the Fund.

2. Courts Force RAF to Pay: Key Judgments in 2026

South African courts have repeatedly had to compel the RAF to honour its legal obligations in 2026:

209 Victims Awarded R47.3 Million

The Klerksdorp Regional Court ordered the RAF to comply with all valid and existing court orders in favour of 209 road accident victims and to pay them a combined total of more than R47.3 million within 30 days. The court granted mandamus (judicial command) relief after the RAF repeatedly failed to process payments, citing internal administrative system issues. Magistrate MB Mamana ruled that internal administrative errors, omissions or system issues with the RAF cannot override valid court orders.

Sunshine Hospital Awarded R92 Million

The Supreme Court of Appeal (SCA) ordered the RAF to pay Newnet Property (Pty) Ltd, trading as Sunshine Hospital, more than R92 million within seven days – a stark illustration of the Fund’s failure to settle legitimate medical claims.

RAF Slapped with Punitive Cost Orders

In a separate matter, the RAF was issued with a punitive high court cost order and directed to pay a road accident victim R2.23 million, further signalling judicial frustration with the Fund’s conduct.

3. Criminal Charges Against Former CEO Collins Letsoalo

In a landmark accountability move, the Standing Committee on Public Accounts (SCOPA) has formally laid criminal charges against former RAF CEO Collins Letsoalo (June 2026). Letsoalo had been summoned to answer questions about his management decisions in November 2025 but failed to appear, with his legal team instead demanding that SCOPA cease and desist from its oversight inquiry.

SCOPA’s inquiry into the RAF – initiated over concerns about governance failures, misleading information provided to Parliament, and the Fund’s long-standing financial instability – concluded its public hearing phase in early 2026. The draft oversight report warned that the RAF’s controversial RAF1 claim form could trigger a massive influx of claims with severe financial consequences.

4. Supreme Court Declares RAF1 Claim Form Unlawful

In a major legal setback for the RAF, the Supreme Court of Appeal (SCA) upheld a Gauteng High Court ruling in April/May 2026, declaring the RAF’s controversial Board Notices 271 and 302 (2022) – which introduced the new RAF1 claim form – unconstitutional, unlawful, and invalid.

The court ordered the RAF to revert to the older 2008 claim form. Claimants who were previously rejected due to non-compliance with the unlawful form have been given until 30 September 2026 to resubmit their claims.

The financial implications are enormous: it is estimated that approximately 600,000 claims were rejected as a result of the unlawful form, and the RAF may be facing unrecognised liabilities estimated at up to R500 billion in contingencies. Experts have warned the RAF may require a significant government bailout.

5. RAF Funding Model Under Review: New Vehicle Licence Fees on the Cards

With the RAF’s current funding model – a levy on petrol and diesel – under severe strain, the Department of Transport has initiated a formal review of how the Fund is financed. Several key proposals are on the table:

• A vehicle owner contributory scheme: A separate mandatory fee attached to annual vehicle licence renewals or initial vehicle registrations
• A no-fault insurance system (RABS Bill): The Road Accident Benefit Scheme (RABS) Bill would replace the current fault-based system with a no-fault model, introduce a schedule of defined benefits, and limit lump-sum payments in favour of annuity payments
• Limiting payouts to South African citizens: Parliament has debated restricting RAF payouts to South Africans, with the ATM party calling for foreign nationals to be excluded

The shift to electric vehicles (EVs) is also a growing concern, as EV charging does not attract the fuel levy that currently funds the RAF, creating a long-term funding gap as more South Africans adopt EVs.

Minister Creecy confirmed: The Department of Transport, in collaboration with the Road Accident Fund, has initiated a structured review of the RAF funding framework, guided by a formal business case. Once this process is completed, it will be communicated publicly.

6. RAF Settlement Drives and Backlog Clearance Efforts

On the positive side, the RAF has been conducting Settlement Drives at hospitals across South Africa. In February 2026, the Fund hosted the second instalment of its Settlement Drive at Ngwelezane Hospital, settling claims worth over R20 billion in the process.

The RAF’s interim board – appointed by Minister Creecy after the dissolution of the previous board due to governance failures – has committed to:

• Prioritising claims older than 180 days
• Disbursing more than R4 billion per month in outstanding payments
• Publishing bi-monthly reports on payment progress
• Strengthening monitoring systems for compliance and transparency

Key Trends and Takeaways for July 2026

What Should RAF Claimants Do Right Now?

If you have a pending or previously rejected RAF claim, here is what you need to know:

1. Check your claim status on the RAF’s official website at raf.co.za using the online tracking tool.
2. If your claim was rejected due to the RAF1 form, you have until 30 September 2026 to resubmit using the older 2008 claim form. Consult a qualified RAF attorney immediately.
3. If you have a court order that has not been paid, speak to your attorney about applying for mandamus relief to compel the RAF to comply.
4. Document everything – keep records of all correspondence, court orders, and payment requests.

Conclusion

The Road Accident Fund remains one of South Africa’s most troubled state entities in 2026. With R21.7 billion in unpaid claims, a landmark court ruling against its claim form, criminal charges against its former CEO, and a fundamental review of its funding model underway, the RAF is at a critical crossroads. Road accident victims – many of whom have been waiting years for compensation – deserve urgent and transparent action from both the Fund and the government.

Stay tuned to this blog for daily updates on the Road Accident Fund and what it means for South African motorists and accident victims.

Sources: IOL Business (17 July 2026), Moneyweb, Eyewitness News (EWN), Gert Nel Inc Attorneys, Moonstone Information Refinery, Daily Maverick.