Road Accident Fund in Crisis: New CEO, R439bn Shortfall, Funding Overhaul & Key Updates – October 2026

Road Accident Fund South Africa: Latest News & Updates – 27 October 2026

The Road Accident Fund (RAF) in South Africa continues to dominate headlines as the embattled state insurer faces a perfect storm of financial insolvency, governance failures, legislative reform, and a new leadership appointment. Here is a comprehensive roundup of the most important RAF developments as of October 2026.

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

The most alarming development in recent weeks is the publication of the RAF’s financial results for the year ended 31 March 2026. The Auditor-General has issued a damning warning to Parliament, noting that the RAF incurred a net loss of R145.7 billion during the year, and that total liabilities now exceed total assets by a staggering R439.49 billion.

The Auditor-General’s finding stated: “These conditions indicate that a material uncertainty exists that may cast significant doubt on the entity’s ability to continue as a going concern.”

In plain terms: if the RAF were a private insurer, it would be forced to close. The fund currently owes claimants over R22 billion on claims already settled but not yet paid — a figure that grew by R3.62 billion in just three months to the end of June 2026. Total unpaid claims are estimated at over R500 billion.

2. New CEO Waseem Carrim Takes the Helm on 1 November 2026

In a significant leadership development, Cabinet has approved Waseem Carrim as the new Chief Executive Officer of the Road Accident Fund. Carrim, a chartered accountant and former CEO of both the National Youth Development Agency (NYDA) and the National Student Financial Aid Scheme (NSFAS), will officially take office on 1 November 2026.

He becomes the fifth RAF CEO in just over a year — a staggering leadership turnover at an institution in deep crisis.

Carrim’s Key Priorities

• Rebuilding trust with claimants, lawyers, medical professionals, and the public
• Tackling the claims backlog — currently estimated at around 100,000 outstanding claims
• Combating fraud and corruption and ensuring consequences for wrongdoing
• Reforming the financial model, including exploring annuity payments instead of once-off lump-sum payouts
• Advancing the Road Accident Benefit Scheme (RABS) Bill, which would introduce a no-fault compensation system

In an interview with Moneyweb, Carrim said: “I think there are three things that make me believe the situation can be turned around: a strong and supportive transport minister, an interim board led by very capable individuals, and a five-year mandate to turn things around.”

He was candid about the scale of the challenge: “The claims backlog is quite severe. I don’t want to go in and say I’m going to resolve the claims backlog. But I’d like to at least present a plan on how claims will be brought under control.”

3. RAF Funding Overhaul: What It Could Mean for Motorists

One of the most hotly debated topics is how the RAF will be funded going forward. Currently, the RAF is primarily funded through a fuel levy of R2.25 per litre, which adds approximately 7–8% to the pump price. However, with fuel prices hitting record highs (above R30 per litre in some areas) and the rise of electric vehicles threatening to erode fuel-levy revenue, the government is exploring alternatives.

Options Under Consideration

• Increase the fuel levy to as much as R3 per litre (proposed by the RAF itself)
• Reduce the fuel levy and introduce a vehicle-licence-linked contribution (favoured by Deputy Transport Minister Mkhuleko Hlengwa)
• Compulsory third-party insurance linked to vehicle licensing
• A hybrid funding model combining multiple revenue streams

The Organisation Undoing Tax Abuse (OUTA) has warned that shifting to an annual vehicle-linked payment could create an unrealistic financial burden for motorists, estimating such a payment could be in the region of R1,000 to R2,000 per year per vehicle.

The Democratic Alliance (DA) has been vocal in its position: “The RAF must be reformed, not re-financed.” The party argues that pouring more money into a dysfunctional system without fixing governance and operational failures will achieve nothing.

4. SCOPA Inquiry: Governance Failures, Corruption, and Accountability

Parliament’s Standing Committee on Public Accounts (SCOPA) has been conducting a wide-ranging inquiry into the RAF, and its draft report has flagged serious concerns, including:

• Excessive and questionable security spending by former leadership
• Procurement irregularities and financial mismanagement
• Governance failures spanning multiple years

SCOPA Chairperson Songezo Zibi has stated that previous RAF executives and board members should be required to personally pay back unaccounted money spent during their tenure. The committee is finalising its report with recommendations that include financial recovery from responsible officials.

Former RAF CEO Collins Letsoalo, who was suspended in April 2025 over a controversial lease deal and accused of fostering a culture of fear, now faces SCOPA charges.

5. Legislative Amendments in the Pipeline

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. The proposed changes cover four key areas:

1. Capped claims — limiting the maximum payout amounts
2. Rehabilitation — improving support for accident victims’ recovery
3. Mediation and conciliation — reducing costly litigation
4. Claims by foreign nationals — following a Constitutional Court ruling that the RAF cannot exclude undocumented foreigners from compensation

Acting Transport Director-General Mokonyama Mathabatha told the committee: “All these issues are in the amendment Act that we are finalising. The Act in its current form makes the scheme not sustainable.”

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

6. Court Rulings: Discovery Wins SCA Appeal on Medical Expense Deductions

In a significant legal development, the Supreme Court of Appeal (SCA) ruled in favour of Discovery Health on 16 October 2026, ordering the RAF to stop deducting compensation from claimants on the basis that their medical expenses have been or will be paid by their medical aid schemes.

This ruling has major financial implications for the RAF, as it means the fund can no longer reduce payouts to claimants simply because their medical aid has covered treatment costs. The judgment is expected to increase the RAF’s already enormous liabilities further.

7. Crash Victims Left Destitute as RAF Delays Payments

Behind the statistics and policy debates are real people suffering. Reports from The Citizen highlight cases of crash victims and their families left destitute as the RAF drags its feet on payments — even in cases where High Court orders have been issued directing the fund to pay. In one documented case, a claimant was owed approximately R1.2 million for loss of earnings following an accident, yet remained unpaid despite a 2025 court order.

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

8. RAF Extends Claimant-Centred Services

On a more positive note, the RAF has announced the extension of its claimant-centred services to additional cities, including Polokwane (31 October 2026) and Mthatha (24 October 2026). These outreach initiatives aim to bring RAF services closer to claimants in underserved areas, reducing the need for costly legal intermediaries.

Key Takeaways: What You Need to Know About the RAF in October 2026

• The RAF is technically insolvent, with liabilities exceeding assets by R439 billion
• A new CEO, Waseem Carrim, takes office on 1 November 2026 with a mandate to reform the fund
• The government is considering a major overhaul of RAF funding, which could affect motorists at the fuel pump and during vehicle licence renewals
• Legislative amendments to the RAF Act are being finalised but have not yet been passed
• The SCOPA inquiry has exposed years of governance failures and is pushing for accountability from former leadership
• A Supreme Court ruling has barred the RAF from deducting medical aid payments from claimant compensation
• Thousands of accident victims remain unpaid, with a backlog of approximately 100,000 claims

What Should RAF Claimants Do?

If you have been involved in a road accident in South Africa and need to claim from the RAF, it is strongly advisable to:

• Seek the assistance of a qualified attorney who specialises in RAF claims
• Keep all documentation related to your accident, injuries, and medical treatment
• Be aware that the RAF is under severe financial pressure and payments may be delayed
• Stay informed about legislative changes that may affect your claim
• Contact the RAF directly or visit one of their claimant-centred service points for guidance

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