Road Accident Fund Crisis Deepens: Latest News and Developments December 2025

Road Accident Fund Under Scrutiny: Major Developments in December 2025

South Africa’s Road Accident Fund (RAF) continues to face mounting challenges as 2025 draws to a close, with new revelations about governance failures, questionable procurement deals, and ongoing parliamentary investigations dominating headlines. Here’s a comprehensive overview of the latest developments affecting this critical public entity.

Executive Suspensions and Governance Crisis

The RAF’s leadership crisis has intensified with multiple senior executives placed on precautionary suspension in recent months. Key figures including acting CEO Phathu Lukhwareni, CFO Bernice Potgieter, acting chief governance officer Mampe Kumalo, and head of office Mpho Manyasha have all been suspended pending investigations.

The suspensions come amid ongoing investigations by the Standing Committee on Public Accounts (SCOPA) into alleged financial mismanagement and governance failures at the fund. Former CEO Collins Letsoalo, who was suspended earlier, has been at the center of controversy and faces potential criminal charges if he fails to appear before parliamentary hearings.

Controversial Call Centre Deal Raises Red Flags

One of the most significant recent developments involves a questionable call centre procurement deal that has raised serious concerns about the RAF’s internal processes. According to investigative reports, the RAF terminated its internal call centre operations and entered into a contract with Alteram Solutions through the Department of Employment and Labour.

Key issues with this deal include:

• The replacement of a R25 million internal service with an alternative costing R190 million
• Significant process irregularities in the procurement process
• Decisions made outside of proper bid adjudication committee procedures
• Conflicts of interest involving senior executives who both approved and ratified the deal

Documents reveal that while internal approval processes were being conducted in February 2023, suspended CEO Collins Letsoalo had already written to the Department of Employment and Labour in late 2022 seeking permission to participate in their contract with Alteram, suggesting the decision had been pre-determined.

Debunking the R18 Billion Foreign Claims Myth

A comprehensive fact-check by Africa Check has debunked widely circulated claims that the RAF paid R18 billion to foreign nationals over five years. The investigation revealed that:

• The actual amount paid to non-South African claimants was approximately R8.6 billion from 2019/20 to 2023/24
• This represents just over 1% of all RAF payments during this period
• The inflated R18 billion figure was initially claimed by former CEO Collins Letsoalo and repeated by RAF spokesperson McIntosh Polela
• The RAF itself has “no information regarding the origin of the R18 billion figure”

This misinformation has contributed to anti-immigrant sentiment while diverting attention from the real causes of the RAF’s financial crisis.

The Real Financial Crisis: Accounting Controversies

The RAF’s financial troubles run much deeper than foreign claims. Central to the ongoing SCOPA inquiry is the fund’s controversial decision to change its accounting practices:

• Before the change, the RAF’s claims liability was around R330 billion
• After switching to an unapproved accounting framework, this dropped to under R30 billion on paper
• This represents a 90% reduction that experts say is misleading
• The Auditor-General has found this change to be misleading and has been in court battles with the RAF

According to analysis, the accounting changes allow management to keep claims “in transit” in a convenient limbo where they don’t count as liabilities on the books.

High Court Criticism and Legal Battles

The Bloemfontein High Court has criticized the RAF for how far it has gone to protect its former CEO, highlighting serious concerns about the fund’s governance. Additionally, the Supreme Court of Appeal has ordered a judge to face allegations of malfeasance related to Road Accident Fund matters.

These legal developments underscore the depth of the governance crisis affecting the RAF and the need for comprehensive reform.

Parliamentary Oversight Intensifies

SCOPA’s ongoing inquiry into RAF financial matters continues to uncover evidence of systemic failures. The committee, chaired by Songezo Zibi, has been investigating:

• Accounting practices and financial mismanagement
• Governance failures and maladministration
• Substantial claims backlogs
• Procurement irregularities

The inquiry has revealed that the RAF’s problems stem from internal failures rather than external factors like foreign claims.

Impact on Road Accident Victims

While the RAF deals with its internal crises, road accident victims continue to suffer. The fund’s problems have resulted in:

• Delayed claim processing
• Uncertainty about compensation
• Reduced confidence in the system
• Calls for comprehensive reform

Legal experts emphasize that the focus should be on addressing systemic maladministration rather than scapegoating foreign claimants.

Looking Ahead: Reform Imperatives

As 2025 concludes, the RAF faces several critical challenges that require immediate attention:

1. Governance Reform: Implementing robust governance structures to prevent future maladministration
2. Financial Transparency: Adopting proper accounting standards and providing accurate financial reporting
3. Claims Processing: Addressing the substantial backlog of unprocessed claims
4. Leadership Stability: Appointing competent leadership committed to serving road accident victims
5. Parliamentary Oversight: Ensuring continued scrutiny and accountability

Conclusion

The Road Accident Fund’s crisis in December 2025 represents a critical juncture for this essential public institution. While misinformation about foreign claims has dominated headlines, the real issues lie in systemic governance failures, questionable procurement practices, and controversial accounting changes.

The ongoing parliamentary inquiry and legal proceedings will be crucial in determining the fund’s future direction. For the thousands of South Africans who depend on the RAF for compensation after road accidents, comprehensive reform cannot come soon enough.

As investigations continue and new leadership takes charge, the focus must remain on serving road accident victims effectively while ensuring transparent and accountable governance of this vital public resource.

Stay updated with the latest Road Accident Fund developments as this story continues to unfold. The outcomes of current investigations will have significant implications for road accident compensation in South Africa.