Road Accident Fund Crisis Deepens: SCOPA Inquiry Reveals R100 Billion Liability Gap as Fuel Levies Rise in 2026

Road Accident Fund Under Parliamentary Scrutiny as Financial Crisis Escalates

The Road Accident Fund (RAF) continues to dominate South African headlines in March 2026, as Parliament’s Standing Committee on Public Accounts (SCOPA) moves into the final phase of its comprehensive oversight inquiry. The investigation has revealed alarming financial mismanagement and governance failures that have left the fund with estimated liabilities of nearly R100 billion against an annual income of just R50 billion.

SCOPA Inquiry Uncovers Systemic Failures

The ten-week parliamentary inquiry has exposed several critical issues plaguing the RAF:

• Audit Deterioration: The RAF’s financial standing has declined dramatically from a clean audit in 2019/20 to multiple disclaimers and adverse audit 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, leading to default judgments totaling R15.7 billion
• Costly Claim Process: 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 people can claim directly, active steps were taken to reduce direct claims from over 35,000 to just 2,000 in the last financial year

Fuel Levy Increases Add Financial Pressure

Adding to motorists’ concerns, the 2026 Budget announced significant increases to fuel-related levies, including the RAF levy. From April 1, 2026:

• General Fuel Levy will increase by 9 cents per liter for petrol and 8 cents for diesel
• RAF levy will rise by 7 cents per liter to R2.25 per liter
• These increases will add approximately R1.30 per liter to fuel costs

Critics argue that these levy increases are “throwing more money at a broken system” without addressing the underlying governance and operational issues.

Governance Failures and Corruption Allegations

The SCOPA inquiry has revealed troubling governance practices:

• Withheld Information: Former RAF Board chairpersons indicated that critical information was withheld during decision-making processes regarding accounting policy changes
• Costly Litigation: The RAF spent over R20 million in litigation costs against the Auditor-General
• Staff Suspensions: Significant financial costs from suspending large numbers of employees on full pay for extended periods
• Fraud Allegations: Ongoing investigations by the Special Investigation Unit (SIU) into allegations involving legal firms and claims processing irregularities

Impact on Road Accident Victims

The RAF’s operational challenges have severely impacted accident victims seeking compensation:

• Lengthy delays in claim processing and payments
• Increased costs for claimants to access the system
• Reduced accessibility for direct claims
• Growing backlog of unpaid claims contributing to the liability crisis

Recent Settlement Initiatives

Despite the challenges, the RAF has attempted to address some claims through settlement drives. On February 20, 2026, the fund hosted its second Settlement Drive at Ngwelezane Hospital, demonstrating efforts to reach claimants directly.

Legal Developments and Court Cases

Recent court decisions have also impacted the RAF’s operations. In the case of Cele v Road Accident Fund [2026] ZAMPMBHC 2, the court dismissed the RAF’s special plea, ruling that the fund “cannot benefit from its own delay.” This decision sets an important precedent for future cases involving RAF delays.

Parliamentary Action and Future Outlook

SCOPA plans to complete its draft report by the end of February 2026, with the final report to be tabled in the National Assembly for debate and voting. The committee’s findings are expected to result in significant recommendations for RAF reform.

Key areas likely to be addressed include:

• Governance structure reforms
• Claims processing improvements
• Financial management oversight
• Accessibility enhancements for claimants
• Accountability measures for management

Industry Response and Criticism

Industry experts and civil society organizations have criticized the government’s approach of increasing levies without addressing fundamental systemic issues. The Automobile Association and other stakeholders argue that sustainable reform requires comprehensive restructuring rather than additional funding for a dysfunctional system.

Conclusion

The Road Accident Fund’s crisis represents one of South Africa’s most significant public sector challenges in 2026. With liabilities approaching R100 billion and ongoing governance failures, the fund requires urgent and comprehensive reform. The SCOPA inquiry’s findings will likely serve as a catalyst for much-needed changes to ensure the RAF can fulfill its mandate of providing compensation to road accident victims while maintaining financial sustainability.

As the parliamentary process continues and fuel levy increases take effect, all stakeholders – from government to civil society to ordinary South Africans – will be watching closely to see whether meaningful reform finally emerges from this crisis.

Stay updated on the latest Road Accident Fund developments and their impact on South African motorists and accident victims by following our ongoing coverage.