Major Shake-Up: Road Accident Fund Board Dissolved Amid Governance Crisis

Road Accident Fund Board Dissolved: What It Means for South Africa

Date: August 5, 2025

In a major development for South Africa’s road safety and compensation landscape, Minister of Transport Barbara Creecy has officially dissolved the Board of Directors of the Road Accident Fund (RAF). This decisive action, announced on July 15, 2025, follows months of mounting governance and operational failures that have severely undermined the RAF’s ability to fulfill its mandate.

Why Was the RAF Board Dissolved?

• Financial Mismanagement: The RAF has been embroiled in costly litigation over accounting standards, further straining its already limited resources.
• Leadership Instability: The suspension of the CEO was handled inconsistently, leading to legal challenges and uncertainty within the organization.
• Default Judgments: Frequent default judgments against the RAF have increased its liabilities and threatened its financial sustainability.
• Board Infighting: Deep divisions within the board, with most resolutions passed by casting vote rather than consensus, reflected a lack of cohesion.
• Failure to Fill Key Positions: The board failed to appoint a Chief Claims Officer and Head of Legal, both critical to the RAF’s operations.

Government Response and Next Steps

• Interim Leadership: The Minister has requested the National Treasury to appoint an interim accounting authority to prevent a governance vacuum.
• New Board Recruitment: A transparent recruitment process for a new board is being initiated to restore effective governance.
• Expert Advisory Committee: An independent panel of experts will review the RAF’s business processes and recommend reforms.
• Expanded Investigations: The Special Investigating Unit (SIU) may expand its current investigation to cover recent events at the RAF.

Implications for Road Accident Victims and the Public

Minister Creecy emphasized the government’s commitment to restoring stability and ensuring that the RAF can provide timely and equitable compensation to road accident victims. The department also aims to finalize the Road Accident Benefit Scheme Bill, which will introduce a no-fault system to simplify access to benefits and reduce legal costs for claimants.

This shake-up is expected to bring much-needed reform to the RAF, but the coming months will be critical as new leadership and oversight mechanisms are put in place.

Stay tuned for further updates on the Road Accident Fund and related developments in South Africa’s transport sector.

Read the official government statement