Road Accident Fund Crisis Deepens: Board Dissolved, Mediation Fails, and Claims Backlog Grows in August 2025

Major RAF Developments Shake South Africa’s Road Accident Compensation System

The Road Accident Fund (RAF) continues to face unprecedented challenges in August 2025, with significant governance changes, operational failures, and mounting financial pressures threatening the institution’s ability to serve South African road accident victims effectively.

Transport Minister Dissolves RAF Board Over Governance Failures

In a decisive move on July 15, 2025, Transport Minister Barbara Creecy dissolved the entire Board of Directors of the Road Accident Fund due to persistent governance and operational challenges. The board’s dissolution came after its failure to act in the best interests of the entity and fulfill its fiduciary duties.

“Some of you will recall that the previous board was dissolved on 15 July 2025, due to its failure to act in the best interests of the entity and to fulfil its fiduciary duties,” Minister Creecy stated during a media briefing in Pretoria.

New Interim Board Appointed to Address Crisis

Following Cabinet approval, Minister Creecy announced the appointment of an Interim Board for the RAF on August 8, 2025, for a period of six months or until a new permanent board is appointed. The interim board is tasked with providing strategic direction and ensuring financial and governance stability.

The interim board members include:

• Kenneth Brown (Chairperson)
• Nonhlanhla Mabusela-Aikhuere (Vice-Chairperson)
• Ntswaki Kutumela
• Innocentia Mmule Pule
• Richard Dyantyi
• Mpontshane Alfred Mkhipheni
• Alfredina (Ntina) Themba
• Neeshan Balton

Mandatory Mediation System Fails to Deliver Results

A critical challenge facing the RAF is the failure of the mandatory mediation system introduced to reduce court backlogs. According to the Personal Injury Plaintiff Lawyers Association (Pipla), the RAF lacks the capacity to mediate cases at scale.

Shocking statistics reveal that out of 1,000 mediation notices served on the RAF in the past four months, only three cases have been mediated, with none resulting in settlements. This represents a mediation success rate of just 0.3%.

“The RAF simply does not have the capacity to mediate in volume,” said Pipla chairperson Advocate Justin Erasmus. “Only 35 out of more than 1,000 Rule 41A notices have been responded to, and just three matters have gone to mediation.”

Court System Under Severe Strain

The civil justice system is experiencing unprecedented delays, with civil trials in Johannesburg being allocated dates as far as November 2027 – three and a half years in advance. In Pretoria, the situation is even worse, with civil trials currently being scheduled for January 2029, representing a waiting period of four and a half years.

These delays are largely attributed to the massive backlog of RAF default judgment cases clogging the court system, effectively denying South African citizens their constitutional right to access justice.

RAF Pretoria Office Launches Settlement Drive

In an attempt to address the mounting backlog, the RAF Pretoria Regional Office announced a block settlement drive from August 6-8, 2025. This initiative aims to fast-track claims that are ready for settlement and provide some relief to claimants who have been waiting for compensation.

Financial Impact: R45 Billion in Claims Paid in 2024

Recent data reveals that road crashes cost South Africa approximately R215 billion (US$11.5 billion) annually. In 2024 alone, the Road Accident Fund paid out R45 billion in claims, continuing a trend of substantial payouts that has persisted since 2020.

Parliamentary Inquiry and Investigation Planned

The Standing Committee on Public Accounts (SCOPA) has adopted terms of reference for a comprehensive inquiry into RAF financial matters. The committee aims to begin the inquiry in mid-September 2025, with completion targeted for the end of October 2025.

The Democratic Alliance has called for the investigation to cover all wrongdoing, including misconduct by suspended CEO Collins Letsoalo, who has since referred a dispute with the fund to the Commission for Conciliation, Mediation and Arbitration (CCMA).

Road Accident Benefit Scheme Bill Revival

The Department of Transport continues to pursue the Road Accident Benefit Scheme (RABS) Bill as a long-term solution to the RAF’s problems. The bill proposes a no-fault based comprehensive social security scheme that would allow expanded access to benefits for all road users.

However, critics argue that the reintroduction of the RABS Bill is “ill-advised” and that the focus should be on properly executing the existing Road Accident Fund Act.

Impact on Road Accident Victims

The ongoing crisis has severe implications for South African road accident victims who depend on the RAF for compensation and rehabilitation services. With mediation failing, court delays extending to 2029, and governance instability, many victims face prolonged waits for justice and financial support.

The RAF is responsible for providing appropriate cover to all road users within South Africa’s borders, rehabilitating and compensating persons injured in motor vehicle accidents, and promoting road safety.

Looking Ahead: Challenges and Solutions

The interim board faces several critical challenges:

• Addressing deficiencies in governance and control systems
• Reducing frequent default judgments against the RAF
• Filling critical executive positions
• Cooperating with Special Investigating Unit (SIU) investigations
• Developing a sustainable operational and governance model

The Ministry has established a panel of independent experts to advise on stakeholder views and review the RAF’s business processes to propose actionable recommendations.

Conclusion

The Road Accident Fund crisis represents one of South Africa’s most significant institutional challenges in 2025. With governance failures, operational inefficiencies, and a justice system under strain, urgent reform is needed to restore public confidence and ensure road accident victims receive timely compensation and care.

The success of the interim board and the implementation of sustainable solutions will be crucial in determining whether the RAF can fulfill its mandate to serve South African road users effectively. As investigations proceed and reform efforts continue, stakeholders across the country will be watching closely for signs of improvement in this critical public institution.