Road Accident Fund Crisis Deepens: SCOPA Inquiry Reveals R20 Billion Backlog as RAF Pays R3.3 Billion in October 2025

Parliamentary Inquiry Exposes Deep-Rooted RAF Crisis

South Africa’s Road Accident Fund (RAF) is facing unprecedented scrutiny as the Standing Committee on Public Accounts (SCOPA) launched a comprehensive oversight inquiry this week, revealing alarming allegations of maladministration and financial mismanagement. The inquiry comes as the fund grapples with a staggering R20+ billion backlog in outstanding claims.

Deputy Transport Minister Mkhuleko Hlengwa made a stark admission during the proceedings: “RAF is in crisis, and we have taken decisions, including but not limited to the dissolution of the board; we’ve got an interim board. We don’t need anybody else to tell us that, and our participation in this inquiry is to uphold the constitutional injunction of accountability and oversight.”

R3.3 Billion Payment Breakthrough Amid Ongoing Challenges

In a significant development, the RAF has accelerated its payment schedule, disbursing R3.3 billion in outstanding claims over just two weeks in September 2025. This represents a major shift in the fund’s approach to addressing the massive backlog of claims outstanding for more than 180 days.

Key Payment Statistics:

• R3.3 billion paid in two weeks (September 2025)
• Expected monthly payments of R4+ billion going forward
• Total outstanding claims estimated at over R20 billion
• Priority given to claims older than 180 days

The new interim RAF board, led by Kenneth Brown, has committed to making these substantial monthly payments the “new norm” as part of the fund’s revised business model.

Foreign Claims Controversy: R546 Million Under Scrutiny

A significant controversy has emerged regarding payments to foreign nationals. Acting Transport Minister Kgosientsho Ramokgopa revealed that R546 million was paid to foreign claimants during the 2024/25 financial year, sparking intense debate about the use of South African taxpayer funds.

Foreign Claims Breakdown:

• Total paid to foreigners: R546 million (2024/25)
• Number of foreign personal claims registered: 222
• Claims successfully settled: Only 17 out of 222
• Claims repudiated or flagged: 78
• Claims still in progress: 115

ActionSA MP Alan Beesley has raised concerns about this expenditure, questioning the legitimacy of foreign claims and calling for legislative changes to require tourists to have their own medical coverage.

Double Payments: System Failures, Not Corruption

During the SCOPA inquiry, RAF officials clarified that double payments made in respect of claims are “not generally due to corruption but the result of claimants pursuing multiple avenues to get their money.” Acting regional manager Sibongile Mgwali explained that duplicate payments largely occurred when the fund’s bank account was attached after a claim was already lodged on the RAF system.

“So instead of waiting until RAF does the payment, they will go in and attach RAF’s bank account, meaning they will submit a rate, and the bank will have no option but to pay the amount, whilst the same amount is already requested on the system,” Mgwali testified.

New Leadership Under Kenneth Brown

Following the dissolution of the previous RAF board in July 2025 by Transport Minister Barbara Creecy, a new interim board was appointed in August 2025. Kenneth Brown, a former National Treasury executive and current Development Bank of Southern Africa board member, now chairs the interim board.

Leadership Changes Timeline:

• July 15, 2025: Previous RAF board dissolved
• August 8, 2025: Interim board appointed
• September 2025: New payment strategy implemented
• October 2025: Ongoing reforms and transparency measures

Claims Processing Challenges Revealed

The SCOPA inquiry heard that of 105,039 claims pre-assessed between July 4, 2022, and March 31, 2025, a staggering 75,990 (72%) were found to be non-compliant, while only 29,049 (28%) were fully compliant. This highlights significant challenges in the claims submission and processing system.

Officials flagged several issues contributing to delays:

• Delays from Post Office submissions
• Duplicitous lawyers who don’t communicate correctly with clients
• Over-reliance on the belief that more money can be obtained from the RAF than what is offered

Legal Setbacks and Court Decisions

The RAF faced a significant legal setback when the High Court in Pretoria dismissed their application for an extension of the 180-day payment moratorium. This ruling means the RAF must now pay claims within 14 calendar days instead of having up to six months.

Judge Jabulani Nyathi struck the application from the court roll on September 2, 2025, citing a lack of urgency, which has accelerated the pressure on the fund to clear outstanding payments.

Upcoming Reforms: Road Accident Benefit Scheme Bill

The Department of Transport is finalizing the Road Accident Benefit Scheme Bill, which will introduce a no-fault system to make it easier for road accident victims to access benefits without costly legal processes.

Proposed Bill Features:

• No-fault compensation system
• Reduced legal costs for claimants
• Requirements for tourist insurance
• Long-term financial sustainability measures
• Elimination of systemic backlogs

Deputy Minister Hlengwa indicated the bill is awaiting Cabinet consultation and is expected to move forward as part of comprehensive RAF reforms.

Financial Position and Sustainability Concerns

Despite the challenges, the RAF maintains it can meet its obligations over the next 12 months. The fund’s financial position as of March 31, 2025:

• Unpaid claims: R10.4 billion
• Total claims liability: R40.4 billion
• Annual income from fuel levy: Approximately R48 billion
• Total paid across all claims (2024/25): R42.94 billion

Transparency and Accountability Measures

The new interim board has implemented several measures to improve transparency and accountability:

• Bi-monthly reports to plaintiff attorneys and suppliers
• Public availability of payment progress reports
• Strengthened monitoring systems for paid and outstanding claims
• Direct engagement protocols for dispute resolution
• Regional manager contact details provided to attorneys

Looking Ahead: What to Expect

As the Road Accident Fund continues its transformation under new leadership, several key developments are expected:

1. Continued High-Volume Payments: Monthly payments of R4+ billion to clear the backlog
2. Legislative Reform: Passage of the Road Accident Benefit Scheme Bill
3. System Modernization: Implementation of updated claims management systems
4. Enhanced Oversight: Ongoing SCOPA inquiry into RAF affairs
5. Foreign Claims Policy: Potential legislative changes regarding tourist coverage requirements

Conclusion

The Road Accident Fund’s developments in October 2025 represent a critical turning point for South Africa’s road accident compensation system. With new leadership, accelerated payments, and comprehensive reforms on the horizon, the RAF appears to be moving toward greater efficiency and transparency.

However, significant challenges remain, including the foreign claims controversy, the massive outstanding backlog, and the need for sustainable long-term solutions. The success of these reforms will ultimately be measured by the fund’s ability to provide timely, fair compensation to road accident victims while maintaining financial sustainability.

The SCOPA inquiry continues this week, with the Office of the Chief Procurement Officer, the Office of the Accountant General, and the Auditor-General of South Africa expected to provide further testimony. As Deputy Minister Hlengwa stated: “We are here because there’s a crisis,” and the coming months will be crucial in determining whether the RAF can successfully navigate its way out of this crisis.