Road Accident Fund in Crisis: Key Developments You Need to Know – October 2026

Road Accident Fund in Crisis: Key Developments You Need to Know – October 2026

South Africa’s Road Accident Fund (RAF) continues to dominate headlines as the embattled state insurer faces a deepening financial crisis, sweeping legislative reforms, a new CEO, and mounting pressure from Parliament. Here is a comprehensive roundup of the most important RAF news and developments as of October 24, 2026.

1. RAF’s R439 Billion Shortfall Raises Serious Solvency Fears

In one of the most alarming financial disclosures in recent memory, the RAF’s March 2026 year-end results revealed a staggering net liability position of R439.49 billion — equivalent to approximately 18–19% of South Africa’s entire national budget, or more than 5% of the country’s GDP.

The Auditor-General issued a damning warning to Parliament, stating:

“A net loss of R145.7 billion was incurred during the year ended 31 March 2026 and, as of that date, the total liabilities exceeded its total assets by R439.49 billion… these indicate that a material uncertainty exists that may cast significant doubt on the entity’s ability to continue as a going concern.”

To put this in perspective, the RAF’s shortfall exceeds the combined debt of Eskom (approximately R320 billion) and Transnet (approximately R155 billion). The fund currently owes compensation to 288,000 claimants whose claims are awaiting finalisation — with more than 59% having waited five years or longer for settlement.

Experts warn that to cover the shortfall, the fuel levy allocated to the RAF would need to rise from R2.27 per litre to approximately R20 per litre — a politically and economically untenable proposition. Calls are growing for the RAF to be restructured as an insurance entity under the oversight of the Financial Sector Conduct Authority (FSCA) and Prudential Authority.

2. R21.7 Billion in Finalised Claims Still Unpaid

Transport Minister Barbara Creecy revealed in a parliamentary reply that the RAF is sitting with more than R21.76 billion in finalised claims that have not yet been paid out to claimants.

According to the RAF’s Requested Not Yet Paid (RNYP) Claims Register, as at June 28, 2026, there were 37,622 unpaid claims across 47,949 payment transactions. The main reasons for delayed payments include:

• 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

Many of these outstanding claims date back years, with 36,442 claims relating to the period between 2007 and 2026. The revelation has sparked outrage among accident victims and advocacy groups who say the delays are leaving families destitute.

3. New CEO Appointed: Waseem Carrim Takes the Helm

In a significant leadership development, Cabinet approved Mr Waseem Carrim as the new Chief Executive Officer of the Road Accident Fund in September 2026. The appointment comes at a critical time as the RAF faces its most severe financial and governance challenges in its history.

Carrim inherits an institution under intense scrutiny from Parliament’s Standing Committee on Public Accounts (SCOPA), which has been conducting a wide-ranging inquiry into governance failures, procurement irregularities, and deteriorating financial management at the fund.

4. SCOPA Lays Criminal Charges Against Former CEO Collins Letsoalo

Parliament’s Standing Committee on Public Accounts (SCOPA) has taken the extraordinary step of laying criminal charges against former RAF CEO Collins Letsoalo. The move follows SCOPA’s inquiry into allegations of governance failures and financial mismanagement during Letsoalo’s tenure.

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. Zibi stated: “In such cases the committee may then, pursuant to legal advice, recommend all of those monies be recovered from the responsible officials and the board members.”

5. RAF Act Amendments in the Pipeline: Claims, Rehabilitation, and Foreign Nationals

The Department of Transport confirmed during a briefing to Parliament’s Portfolio Committee on Transport on 6 October 2026 that amendments to the RAF Act are being finalised. Acting Director-General Mokonyama Mathabatha told the committee that changes are being considered in four key areas:

1. Capped claims — to limit the maximum compensation payable
2. Rehabilitation — to improve support for injured claimants
3. Mediation and conciliation — to reduce costly litigation
4. Claims by foreign nationals — to address court-ordered obligations and political pressure

Mathabatha stated: “All these issues are in the amendment Act that we are finalising. The Act in its current form makes the scheme not sustainable.”

The proposed amendments must still move through the full legislative process before becoming law.

6. R7.3 Billion Paid to Foreign Nationals — Debate Intensifies

A politically charged debate has erupted over the revelation that the RAF paid out R7.3 billion to foreign nationals, with a single payout amounting to R16.7 million. This has prompted calls from political parties, including the ATM, to limit RAF payouts to South African citizens only.

National Assembly member Marlon Daniels questioned why the Department of Transport has not yet introduced a bill to close the legal gap that allows undocumented foreign nationals to claim compensation.

Minister Creecy defended the current system, noting that the RAF does not compensate claimants based on nationality or immigration status, and that claims are paid according to RAF Act requirements and applicable court decisions. The proposed Road Accident Benefits Scheme (RABS) is expected to address this by clearly defining who is entitled to claim.

7. Discovery Wins SCA Appeal: RAF Barred from Deducting Medical Aid Payments

In a landmark legal ruling on 16 October 2026, the Supreme Court of Appeal (SCA) interdicted the RAF from making deductions from compensation paid to claimants on the basis that their medical expenses have been or will be paid by their medical aid schemes.

The ruling came in an appeal lodged by Discovery Health and has significant implications for how the RAF calculates compensation for road accident victims who are members of medical aid schemes. The RAF had previously been reducing payouts where medical schemes had already covered treatment costs — a practice the SCA has now declared unlawful.

8. Backlog Reduction Project Launched

Despite its financial woes, the RAF has approved a dedicated Backlog Reduction Project to deal specifically with historical claims. The project will run separately from the processing of new claims, ensuring older matters receive dedicated attention.

Under the project, the RAF has committed to:

• Reducing net open claims by 10% in 2026/27
• Reducing net open claims by 12.5% in 2027/28
• Reducing net open claims by 15% in 2028/29

The Association for the Protection of Road Accident Victims (APRAV) has also proposed the creation of a National Settlement Hub, funded by National Treasury, to fast-track claims that are ready for payment without waiting for the RAF’s broader structural problems to be resolved.

9. Funding Model Under Review: New Fees on the Horizon?

With electric and hybrid vehicles gradually eroding fuel-levy revenue — the RAF’s primary funding source — the Department of Transport is reviewing the fund’s entire funding model. Options under consideration include:

• A mandatory fee linked to annual vehicle licence renewals or initial registrations
• An increase in the RAF fuel levy on petrol and diesel
• A transition to a Road Accident Benefits Scheme (RABS) model

Critics, however, argue that new revenue streams will achieve little unless the government first fixes how the fund operates. Wayne Duvenage of the Organisation Undoing Tax Abuse (OUTA) wrote in the Daily Maverick: “The RAF’s crisis is not primarily a failure of revenue collection. It is the result of years of weak leadership, poor administration and inadequate oversight.”

What This Means for Road Accident Victims in South Africa

If you or a loved one has been injured in a road accident in South Africa, the current state of the RAF has serious implications:

• Delays are likely — with over 288,000 claims in the pipeline and a massive backlog, expect lengthy waiting periods.
• Legal representation is critical — given the complexity of the claims process and the RAF’s track record of non-payment, engaging a qualified attorney is strongly advised.
• Legislative changes are coming — proposed amendments to the RAF Act may affect the value and eligibility of future claims.
• Stay informed — the RAF landscape is changing rapidly, and claimants need to monitor developments closely.

Conclusion

The Road Accident Fund is at a crossroads. With a R439 billion liability, a new CEO, criminal charges against its former leadership, sweeping legislative reforms, and a growing backlog of unpaid claims, the RAF faces its most significant transformation in decades. The coming months will be critical in determining whether South Africa’s road accident compensation system can be salvaged — or whether it requires a complete overhaul.

Stay tuned to this blog for daily updates on the Road Accident Fund and other important South African legal and transport news.