Road Accident Fund Crisis Deepens: Board Dissolved, Mediation Fails, and Settlement Backlogs Mount in 2025

Major Governance Overhaul as Transport Minister Takes Decisive Action

The Road Accident Fund (RAF) continues to face unprecedented challenges in 2025, with Transport Minister Barbara Creecy taking the drastic step of dissolving the entire Board of Directors in July. This decisive action follows persistent governance failures that have severely undermined the Fund’s ability to serve South African road accident victims.

Why the RAF Board Was Dissolved

Minister Creecy’s decision to dissolve the RAF board on July 15, 2025, was driven by several critical governance failures:

• Costly litigation over accounting standards that drained financial resources
• Mishandling of CEO suspension that created institutional uncertainty
• Frequent default judgments against the RAF, worsening financial sustainability
• Deep board divisions with most decisions requiring casting votes rather than consensus
• Failure to fill critical positions including Chief Claims Officer and Head of Legal

Mandatory Mediation System Failing Road Accident Victims

Recent reports reveal that the mandatory mediation system introduced to reduce court backlogs is not working effectively. According to the Personal Injury Plaintiff Lawyers Association (Pipla), the RAF lacks the capacity to handle mediation at scale.

Shocking Mediation Statistics

The numbers paint a concerning picture:

• Over 1,000 mediation notices served on the RAF since April 2025
• Only 35 responses received from the RAF
• Just 3 matters proceeded to mediation
• Zero settlements achieved through the mediation process

Pipla chairperson Advocate Justin Erasmus warns that the system is “hopelessly under-resourced,” with only 35 state attorneys in Gauteng handling substantial workloads beyond mediation.

Court System in Crisis: Cases Scheduled Until 2029

The civil justice system faces an unprecedented crisis, with civil trial dates now being allocated for January 2029 in Pretoria’s High Court. This represents a waiting period of over four years between case allocation and hearing dates.

Deputy Judge President Roland Sutherland highlighted that practitioners should be “alarmed” by current trial roll lead times, with the furthest dates in Johannesburg extending to November 2027.

RAF Launches Block Settlement Drive to Address Backlogs

In a positive development, the RAF has launched a national block settlement initiative to reduce the backlog of claims ready for settlement. The program began with the Pretoria Region from August 6-8, 2025.

How the Settlement Drive Works

The initiative allows participating law firms to:

• Submit up to 10 qualifying claims per firm
• Process submissions on a first-come, first-served basis
• Focus on claims that are fully prepared for settlement
• Exclude dismissed or court-rejected claims

RAF Acting CEO Phathutshedzo Lukhwareni emphasized the Fund’s commitment to reducing settlement processing times while maintaining efficient service to claimants.

Parliamentary Inquiry and Future Reforms

The Standing Committee on Public Accounts (SCOPA) has adopted terms of reference for a comprehensive inquiry into RAF financial matters, scheduled to begin in mid-September 2025.

Minister Creecy has also indicated plans to finalize the Road Accident Benefit Scheme Bill, which would introduce a no-fault system to make it easier for road accident victims to access benefits without costly legal processes.

What This Means for Road Accident Victims

The current RAF crisis has significant implications for South African road users:

• Delayed compensation for accident victims and their families
• Increased legal costs due to prolonged court processes
• Limited access to justice with court dates years away
• Financial strain on the healthcare system and families

Looking Ahead: Reform Initiatives

Several reform measures are underway to address the RAF crisis:

1. New Board Appointment: A transparent recruitment process for new board members
2. Expert Advisory Committee: Independent experts reviewing business processes
3. SIU Investigation: Expanded scope to cover recent governance failures
4. Legislative Reform: Progress on the Road Accident Benefit Scheme Bill

Conclusion

The Road Accident Fund’s challenges in 2025 represent a critical juncture for South Africa’s road accident compensation system. While the dissolution of the board and launch of settlement drives show government commitment to reform, the underlying issues of capacity, resources, and systemic inefficiencies require sustained attention.

Road accident victims and their legal representatives must navigate an increasingly complex landscape while awaiting meaningful reform. The success of current initiatives will determine whether the RAF can fulfill its mandate to provide timely, fair compensation to those affected by road accidents in South Africa.

Stay updated on the latest RAF developments and South African legal news by following our blog for regular updates on this evolving situation.