Road Accident Fund in Crisis: Key Updates, Reforms & What South Africans Need to Know (October 2026)

Introduction

The Road Accident Fund (RAF) continues to dominate South African headlines in October 2026, with mounting financial pressures, sweeping legislative reforms, leadership changes, and growing calls for systemic overhaul. Whether you are a road accident victim, a legal professional, or simply a South African motorist, these developments directly affect you. Here is a comprehensive roundup of the latest RAF news and what it means for the future of road accident compensation in South Africa.

1. Government Rules Out Additional RAF Funding — Hybrid Model Proposed

In one of the most significant announcements of the month, Transport Minister Barbara Creecy confirmed on 13 October 2026 that the RAF will not receive any additional government funding. The RAF had lobbied for a fuel levy increase to R3.00 per litre, but Creecy firmly rejected the proposal, citing the financial strain already placed on South African motorists.

Instead, the Minister pointed to the need for a hybrid funding model — one that would ensure contributions from both traditional fuel-buying motorists and the growing number of electric vehicle (EV) drivers. As EV adoption increases, fuel levy revenue is expected to decline over the medium term, making the current funding model increasingly unsustainable.

“We probably would have to have a hybrid system in the short-term because there would be those who would not be buying fuel and those who would be, but in the medium-term, we can expect that less and less contribution would be coming from the fuel levy. So, we’ve now got to get our heads around how do we do this.” — Minister Barbara Creecy

The Minister also emphasised that the priority is to fix the RAF’s internal management and governance challenges before exploring new revenue streams.

2. R21.7 Billion in Unpaid Claims — Backlog Reaches Crisis Levels

As of mid-2026, the RAF is sitting with more than R21.7 billion in finalised claims that have not yet been paid out to accident victims. This staggering figure was revealed by Minister Creecy and underscores the depth of the fund’s financial crisis.

Making matters worse, the RAF’s board chair has stated that the fund is unlikely to overcome its R43-billion total claims load. An annual report tabled before Parliament revealed that more than half of all open RAF claims are now older than five years — a damning indictment of the fund’s ability to process and settle claims timeously.

The Association for the Protection of Road Accident Victims (APRAV) has proposed the creation of a national Settlement Hub — a mechanism that would fast-track claims that are ready for payment without waiting for the RAF’s broader structural problems to be resolved. This proposal calls for National Treasury funding to clear the backlog of approximately 100,000 ready-to-settle claims.

3. RAF Act Amendments in the Pipeline — Four Key Areas of Reform

On 6 October 2026, Parliament’s Portfolio Committee on Transport was briefed on imminent amendments to the RAF Act. Acting Transport Director-General Mokonyama Mathabatha confirmed that the Department of Transport is finalising legislative changes across four critical areas:

• Capped Claims: Introducing defined benefit schedules to limit the fund’s open-ended liability.
• Rehabilitation: Reforming how rehabilitation services are provided to accident victims.
• Mediation and Conciliation: Improving dispute resolution mechanisms to reduce costly litigation.
• Claims by Foreign Nationals: Addressing court-ordered obligations to pay claims from undocumented and illegal residents.

“All these issues are in the amendment Act that we are finalising. The Act in its current form makes the scheme not sustainable.” — Acting DG Mokonyama Mathabatha

It is important to note that these amendments have not yet been enacted — they must still go through the full parliamentary legislative process before becoming law.

4. Supreme Court of Appeal Ruling Triggers Surge of 160,000 New Claims

A Supreme Court of Appeal (SCA) judgment handed down on 30 April 2026 directed the RAF to revert to the 2008 RAF 1 Form for processing claims. This ruling has triggered a massive surge in claims, with the RAF now bracing for almost 160,000 RAF 1 Form claims to be resubmitted. The RAF estimates the liability associated with these revived claims at approximately R40.9 billion.

The fund has also been moving to curb default judgments as legal reforms gather pace, and has reportedly paid out R8.9 billion in claims during the current financial year.

5. New CEO Appointed — Leadership Overhaul Underway

In a positive development, Cabinet has approved Mr Waseem Carrim as the new Chief Executive Officer of the Road Accident Fund. The appointment comes after a turbulent period of leadership instability at the fund. Minister Creecy confirmed that the process of appointing a permanent board is also currently underway.

The new leadership is expected to drive the governance reforms and operational improvements that are widely seen as essential to the RAF’s recovery.

6. SCOPA Lays Criminal Charges Against Former RAF CEO Collins Letsoalo

Parliament’s Standing Committee on Public Accounts (SCOPA) has taken the dramatic step of laying criminal charges against former RAF CEO Collins Letsoalo. Letsoalo had been summoned to appear before SCOPA in November 2025 to answer questions about his management decisions but failed to appear on the first day. His legal team instead issued a formal demand for SCOPA to “cease and desist” from its inquiry.

SCOPA Chairperson Songezo Zibi has also indicated that the committee plans to recommend that former RAF executives and board members personally repay unaccounted funds spent during their tenure — a move that signals a new era of accountability for the embattled institution.

7. Transport Committee Signals Signs of Recovery — But Warns Reform Must Accelerate

Despite the grim financial picture, the Transport Committee Chair noted in early 2026 that the RAF is showing early signs of recovery, but stressed that reform efforts must accelerate significantly. Critics, however, argue that the RAF’s crisis is not primarily a revenue problem — it is the result of years of weak leadership, poor administration, and inadequate oversight.

Wayne Duvenage, writing in the Daily Maverick, warned: “It is futile to find new ways of pouring money into a scheme where funds are being wasted on a grand scale.” He argued that redesigning how the public pays will achieve little unless the government first fixes how the fund operates.

8. RAF Extends Claimant-Centred Services to More Regions

On a more positive note, the RAF has announced the extension of its claimant-centred services to Mthatha on 24 October 2026, following a similar rollout in Bloemfontein. These outreach initiatives are aimed at improving access to RAF services for accident victims in underserved regions of South Africa.

What Does This Mean for RAF Claimants?

If you have a pending RAF claim or are considering lodging one, here is what you need to know:

• Delays are likely to continue in the short term, given the R21.7 billion backlog and the surge of new claims following the SCA ruling.
• Legislative changes are coming, but have not yet been enacted. Current RAF Act provisions still apply.
• Seek legal advice from a qualified attorney who specialises in RAF claims to ensure your claim is correctly lodged and pursued.
• The RAF 1 Form reversion means claimants who previously submitted claims under the old form may need to resubmit — consult your attorney.
• New leadership at the RAF may bring improved service delivery over time, but systemic change will take time to filter through.

Conclusion: A Fund at a Crossroads

The Road Accident Fund stands at a critical crossroads in October 2026. With billions in unpaid claims, a new CEO at the helm, sweeping legislative reforms on the horizon, and a government unwilling to inject additional funding, the pressure is on for the RAF to reform itself from within. The coming months will be decisive in determining whether South Africa’s road accident compensation system can be salvaged — or whether more radical restructuring is required.

Stay tuned to this blog for ongoing updates on the Road Accident Fund and what the latest developments mean for South African road users and accident victims.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. If you have a RAF claim, please consult a qualified attorney.