Road Accident Fund in Crisis: New CEO, R21.7 Billion Backlog & Key Reforms – November 2026 Update

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

The Road Accident Fund (RAF) in South Africa continues to make headlines as the embattled state entity grapples with a mounting financial crisis, leadership instability, and billions of rands in unpaid claims. Here is a comprehensive roundup of the most important RAF news and developments as of November 2026.

1. New CEO Waseem Carrim Takes the Helm

One of the most significant recent developments at the RAF is the appointment of Waseem Carrim as the fund’s new CEO, effective 1 November 2026. Carrim becomes the fifth CEO in just over a year — a staggering rate of leadership turnover at an institution that is technically insolvent and owes road accident victims billions of rands.

Carrim, a chartered accountant who previously served as CEO of the National Youth Development Agency (NYDA) and the National Student Financial Aid Scheme (NSFAS), has vowed to tackle the RAF’s deep-rooted challenges head-on.

In an interview with Moneyweb, Carrim outlined his immediate priorities:

• Reforming the RAF’s financial model
• Rebuilding claims administration
• Controlling litigation costs
• Attacking fraud and corruption
• Restoring trust with lawyers, medical professionals, and claimants

“The claims backlog is quite severe,” Carrim acknowledged. “I’d like to at least present a plan on how claims will be brought under control and made more effective and efficient for the public.”

He also expressed support for the Road Accident Benefit Scheme (RABS) Bill, which would introduce a no-fault compensation system and replace lump-sum payouts with structured, regular payments — a move widely seen as critical to the RAF’s long-term sustainability.

2. R21.76 Billion in Unpaid Claims — 37,622 Victims Still Waiting

Transport Minister Barbara Creecy has confirmed that the RAF is sitting on a staggering R21.76 billion in finalised but unpaid claims as at 28 June 2026. This figure covers 37,622 approved claims across 47,949 payment transactions.

The data was revealed in a parliamentary reply following a question from ActionSA MP Alan Beesley. The RAF tracks these outstanding payments through its Requested Not Yet Paid (RNYP) Claims Register.

Key reasons for the payment delays 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

Alarmingly, 36,442 of the outstanding claims date back to the period between 2007 and 2026, with some victims waiting up to 10 years for compensation they are legally entitled to.

3. RAF’s Total Liabilities Exceed R400 Billion

The scale of the RAF’s financial crisis cannot be overstated. The fund receives more than R50 billion per year from South African taxpayers — primarily through a fuel levy of R2.25 per litre on petrol and diesel — yet its total liabilities exceed R400 billion.

The RAF’s interim board has told Parliament that the fund faces a claims backlog exceeding R100 billion, with R20 billion already paid out in the current financial year. The fund is technically insolvent and has been without a permanent board since July 2025.

4. No Additional Government Funding — Minister Rules It Out

Transport Minister Barbara Creecy has firmly ruled out providing additional government funding to the RAF. Speaking in October 2026, Creecy stated that motorists are already under significant financial pressure and that the priority must be to address the fund’s management and financial challenges from within.

Instead, the Department of Transport is reviewing the RAF’s funding model. Options under consideration include a vehicle-linked fee attached to annual vehicle licence renewals or initial registrations. However, no final decision has been announced.

The RAF fuel levy — which adds roughly 7% to 8% to the pump price — has come under increasing scrutiny, with some civil society organisations calling for it to be scrapped. New CEO Carrim has cautioned against this, saying: “I don’t think in the short term you could scrap the fuel levy.”

5. Surge in Claims Following SCA Ruling

The RAF is also facing a surge of almost 160,000 revived claims following a Supreme Court of Appeal (SCA) ruling. This has placed additional pressure on an already overwhelmed system. In response, the RAF has been moving to curb default judgments as legal reforms gather pace.

The fund paid out R8.9 billion in a recent reporting period, yet the backlog continues to grow — a clear sign that the rate of new claims and settlements is outpacing the fund’s ability to pay.

6. Constitutional Court Rules Against RAF on Foreigners

In a significant legal development in September 2026, the Constitutional Court (ConCourt) ruled against the RAF’s attempts to exclude undocumented foreigners from claiming compensation. The ruling reinforces the principle that all road accident victims in South Africa — regardless of their immigration status — are entitled to claim from the RAF.

7. Fraud, Corruption & Leadership Accountability

The RAF has been plagued by allegations of fraud and corruption. Former CEO Collins Letsoalo, who was suspended in April 2026 over a controversial lease deal, now faces charges before Parliament’s Standing Committee on Public Accounts (Scopa). He was also accused of fostering a culture of fear and excessive personal security spending.

New CEO Carrim has been blunt about the need for accountability: “People need to know that there are consequences for wrongdoing. You have to make very public examples of those involved in corruption so that there is a zero-tolerance approach.”

8. The Road Ahead: RABS Bill and Structural Reform

The long-term solution most experts and the new CEO agree on is the adoption of the Road Accident Benefit Scheme (RABS) Bill. Under this proposed legislation:

• Compensation would be provided on a no-fault basis — meaning victims receive benefits regardless of who caused the accident
• Lump-sum payouts would be replaced with structured, regular annuity payments
• Lengthy and costly litigation would be significantly reduced
• The RAF’s massive liability would become more manageable over time

Carrim has also floated the idea of means-testing, questioning whether the state should carry the full liability for people of means who can access private insurance: “South Africa has quite a developed insurance and protection industry for those who can afford it. Should the state be carrying the full liability, particularly for people of means?”

What This Means for South African Road Accident Victims

If you or a loved one has been injured in a road accident in South Africa, it is important to understand your rights and the current state of the RAF:

• You are entitled to claim from the RAF if you were injured in a road accident caused by the negligent driving of a motor vehicle.
• Delays are common — with over 37,000 approved claims still unpaid, patience and persistence are essential.
• Use a qualified attorney — given the complexity of RAF claims and the current backlog, professional legal assistance is strongly recommended.
• Keep all documentation — missing documents are one of the top reasons for payment delays.
• Stay informed — the RAF’s funding model and claims process are under review, and changes may affect future claims.

Conclusion

The Road Accident Fund is at a critical crossroads. With a new CEO in place, a R400 billion liability, over R21 billion in unpaid claims, and sweeping reforms on the table, 2026 and 2027 will be defining years for this vital institution. South Africans — especially road accident victims — will be watching closely to see whether Waseem Carrim and the interim board can deliver on their promises of transparency, efficiency, and justice.

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