Road Accident Fund Crisis Deepens: Parliamentary Inquiry Reveals R100 Billion Liability Gap as Fuel Levies Increase

RAF Under Parliamentary Scrutiny as Financial Crisis Worsens

The Road Accident Fund (RAF) continues to dominate South African headlines in February 2026, as a comprehensive parliamentary inquiry reveals the extent of the fund’s financial mismanagement while government announces further fuel levy increases to prop up the struggling entity.

SCOPA Inquiry Exposes Systemic Failures

The Standing Committee on Public Accounts (SCOPA) has moved into the final phase of its oversight inquiry into the RAF, following a ten-week investigation that has uncovered alarming financial irregularities and governance failures. The inquiry, which began in late 2025, has revealed a fund in crisis with liabilities approaching R100 billion against an annual income of just R50 billion.

Key findings from the SCOPA inquiry include:

• Audit Deterioration: The RAF’s audit outcomes have declined dramatically from a clean audit in 2019/20 to multiple disclaimers and adverse opinions through 2024/25
• Legal Panel Cancellation: The controversial decision to cancel the Panel of Attorneys without a replacement plan resulted in thousands of undefended court cases and R15.7 billion in default judgments
• Expensive Claim Forms: The new RAF 1 claim form requires claimants to spend up to R100,000 to register claims, effectively denying access to poor South Africans
• Reduced Direct Claims: Despite management claims that direct applications are encouraged, direct claims have plummeted from over 35,000 to just 2,000 in the last financial year

Budget 2026: More Money for a Broken System?

Finance Minister Enoch Godongwana’s Budget 2026 announcement has drawn criticism from motoring organizations and tax watchdogs for increasing fuel levies without addressing the RAF’s structural problems. From April 1, 2026, motorists will face:

• RAF levy increase of 7 cents per litre
• General Fuel Levy increase of 9 cents per litre for petrol and 8 cents for diesel
• Carbon fuel levy increase of 5-6 cents per litre
• Total combined increase of 21 cents per litre

The RAF levy alone will generate an additional R1.5 billion annually, bringing the total RAF contribution from fuel levies to over R45 billion per year. However, critics argue this falls far short of the fund’s long-term provisions of R387.4 billion, expected to reach R426.2 billion by 2028/29.

Industry Criticism Mounts

Bobby Ramagwede, CEO of the Automobile Association, criticized the government’s approach: “The Minister had an opportunity to provide much-needed relief to consumers… the prevailing inefficiencies of RAF won’t be remedied by ‘throwing more money’ at the problem.”

Wayne Duvenage, CEO of the Organisation Undoing Tax Abuse (OUTA), echoed these concerns: “Increasing the levy by a further R1.5 billion per annum, without fixing the structural failures of the RAF, simply shifts the burden to motorists while liabilities continue to grow.”

Legal Challenges and Reform Efforts

The RAF faces multiple legal challenges in 2026, including:

• A Supreme Court of Appeal case regarding compensation for foreign nationals
• Ongoing fraud investigations by the Special Investigation Unit
• Criminal charges against Free State High Court Judge Mpina Mathebula for alleged theft of RAF funds
• Litigation costs exceeding R20 million in disputes with the Auditor-General

Settlement Drives Continue Despite Challenges

Despite the systemic issues, the RAF continues its settlement drives, with the second instalment held at Ngwelezane Hospital on February 20, 2026. However, these efforts are overshadowed by the fund’s inability to process claims efficiently, with settlements now taking an average of five years to complete.

Reform Proposals on the Horizon

The Transport Department has proposed a new no-fault system for RAF compensation that would:

• Provide monthly payments instead of lump sums
• Exclude illegal immigrants from compensation
• Streamline the claims process
• Reduce administrative costs

Looking Ahead: What This Means for South Africans

As the SCOPA inquiry prepares to table its final report in the National Assembly by the end of February 2026, South Africans face the reality of paying more for fuel while the RAF’s fundamental problems remain unresolved. The fund’s technical insolvency since 1981 highlights the urgent need for comprehensive reform rather than continued financial band-aids.

The Transport Committee has indicated that while the RAF shows “signs of recovery,” reform efforts must accelerate to address the crisis that affects millions of South Africans who depend on the fund for compensation after road accidents.

Key Takeaways

• RAF liabilities exceed R100 billion with only R50 billion annual income
• Fuel levy increases will add R1.5 billion annually but won’t solve structural problems
• Parliamentary inquiry reveals decades of mismanagement and governance failures
• Legal challenges and fraud investigations continue to plague the fund
• Reform proposals offer hope but implementation remains uncertain

The Road Accident Fund crisis represents one of South Africa’s most pressing governance challenges, affecting millions of citizens while consuming billions in taxpayer funds. As the parliamentary inquiry concludes and reform proposals advance, 2026 may prove to be a pivotal year for the fund’s future.