Road Accident Fund Crisis Deepens: SCOPA Inquiry Reveals Shocking Allegations of Corruption and Mismanagement

The Road Accident Fund (RAF) is facing its most severe crisis yet, with explosive allegations of corruption, financial mismanagement, and obstruction of justice emerging from a parliamentary inquiry that began this week. The Standing Committee on Public Accounts (SCOPA) has launched a comprehensive investigation into what officials are calling a “crisis” that threatens the very foundation of South Africa’s road accident compensation system.

SIU Investigations Obstructed by RAF Officials

In a shocking revelation on October 10, 2025, the Special Investigating Unit (SIU) disclosed that its probe into the RAF has been repeatedly hampered by interference from fund officials. SIU head Advocate Andy Mothibi told the parliamentary committee that the unit has encountered “several instances of interference” and has been forced to lay criminal complaints against executives for being non-cooperative.

The most damning allegation involves the SIU’s main point person at the RAF, who is specifically accused of obstructing the investigation and ignoring a subpoena for information. This individual reportedly remains employed at the fund despite the criminal complaint.

Former RAF CEO Collins Letsoalo has also been implicated, with Mothibi alleging that Letsoalo “insisted that evidence from employees be run past him before being submitted to the SIU.” This level of interference has prompted the SIU to use its executive powers to pursue criminal charges.

Structural Insolvency and Decades-Old Backlogs

The RAF’s operational difficulties stem from what officials describe as “structural insolvency” and decades-old backlogs that cannot be cleared under current arrangements. Acting chief claims officer Tshepo Moatshe revealed that claims must be finalized within five years or they expire, creating a desperate race against time for thousands of claimants.

The scale of the problem is staggering: between July 4, 2022, and March 31, 2025, a total of 105,039 claims were pre-assessed. Of these, 75,990 (72%) were found to be non-compliant, while only 29,049 (28%) were fully compliant. This high non-compliance rate has contributed significantly to the backlog crisis.

R27 Billion Deficit and Audit Failures

The RAF’s financial situation has deteriorated dramatically, with the Auditor-General raising red flags about a R27 billion deficit. This massive shortfall has deepened the backlog crisis and raised serious questions about the fund’s ability to meet its obligations to accident victims.

The financial crisis has been compounded by audit failures and what sources describe as “R10 million waste” linked to procurement irregularities and inflated billing practices. These allegations point to systemic corruption within the organization that has diverted funds away from legitimate claimants.

Government Response and Reform Efforts

In response to the crisis, Transport Minister Barbara Creecy dissolved the RAF Board of Directors in July 2025, installing an interim board while advertising for substantive board positions. Deputy Transport Minister Mkhuleko Hlengwa acknowledged the severity of the situation, stating: “RAF is in crisis, and we have taken decisions, including but not limited to the dissolution of the board.”

The government is pushing forward with the Road Accident Benefit Scheme (RABS) Bill, which will replace the current RAF system with a new administrator. Hlengwa indicated that the bill is “at the tail end” of finalization and will soon go to Cabinet for onward transmission to Parliament.

Impact on Claimants and Legal Practitioners

The crisis has had devastating effects on accident victims and their families, many of whom have been waiting years for compensation. RAF officials have identified several contributing factors to delays, including:

• Post Office submission delays
• Duplicitous lawyers who fail to communicate properly with clients
• Over-reliance on the belief that more money can be obtained from the RAF than initially offered

Efforts are underway to upscale tracing of individuals in the system to resolve backlogged cases, but the scale of the problem means many claimants may never receive the compensation they deserve.

Parliamentary Oversight and Future Investigations

The SCOPA inquiry, which began on October 7, 2025, is examining evidence of maladministration, financial impropriety, and misuse of public funds at the RAF. SCOPA Chairperson Songezo Zibi has indicated that the investigation will also look into supply chain irregularities involving over R1 billion.

The inquiry is expected to hear from whistleblowers, RAF employees, lawyers, and other stakeholders in the coming weeks. The Office of the Chief Procurement Officer, the Office of the Accountant General, and the Auditor-General are also scheduled to appear before the committee.

Looking Ahead: Can the RAF Be Saved?

The Road Accident Fund crisis represents one of the most significant governance failures in South Africa’s recent history. With billions of rand unaccounted for, criminal investigations underway, and thousands of claimants left in limbo, the question remains whether the RAF can be reformed or if a complete overhaul through the RABS system is the only viable solution.

As Deputy Minister Hlengwa stated: “We are here because there’s a crisis.” The coming weeks will be crucial in determining whether accountability measures and legislative reforms can restore public trust in this vital social safety net.

The RAF crisis serves as a stark reminder of the importance of good governance, transparency, and accountability in public institutions. For the thousands of South Africans who depend on the RAF for compensation after road accidents, the stakes could not be higher.

Stay updated on the latest developments in the Road Accident Fund crisis by following our comprehensive coverage of the SCOPA inquiry and related investigations.