Parliament Launches Inquiry Into Road Accident Fund: Financial Mismanagement, New Legislation, and What It Means for South Africa (July 2025 Update)

The Road Accident Fund (RAF) in South Africa is once again in the national spotlight as Parliament’s Standing Committee on Public Accounts (SCOPA) has officially adopted terms of reference for a comprehensive inquiry into the Fund’s financial management and governance. This move comes amid mounting concerns over financial mismanagement, delayed payments, and a staggering R340 billion in liabilities.

SCOPA Inquiry: A Deep Dive Into RAF’s Finances
SCOPA’s inquiry, set to begin in mid-September 2025, will scrutinize the RAF’s operations from the 2020/21 to 2024/25 financial years. The investigation aims to uncover the root causes of ongoing governance failures, missed audits, and the disappearance of key executives. The African National Congress (ANC) has publicly supported the inquiry, signaling the seriousness of the issues at hand.

Political and Legislative Developments
In parallel with the inquiry, the Minister of Transport has announced plans to table both the Road Accident Fund (RAF) and Road Accident Benefits Scheme (RABS) Bills in Parliament. This legislative push, welcomed by COSATU and other stakeholders, is seen as a critical step toward reforming the compensation system for road accident victims and addressing long-standing inefficiencies.

Key Issues: Financial Mismanagement and Delays
Recent media reports have highlighted the RAF’s ongoing struggles with financial mismanagement, delayed compensation payments, and a lack of transparency. The Fund’s ballooning liabilities and missed audits have raised alarm bells among policymakers and the public alike.

What’s Next for the RAF and South African Road Users?
The upcoming SCOPA inquiry and the introduction of new legislation mark a pivotal moment for the RAF. South Africans will be watching closely as Parliament seeks to restore accountability and ensure that the Fund fulfills its mandate to support road accident victims.

Stay tuned for further updates as the inquiry unfolds and new reforms are debated in Parliament.