Road Accident Fund Crisis: Major Leadership Overhaul as South Africa Tackles Governance Failures

RAF Board Dissolved Amid Governance Crisis

South Africa’s Road Accident Fund (RAF) has undergone a dramatic leadership transformation following persistent governance failures that have plagued the institution for months. On July 15, 2025, Transport Minister Barbara Creecy took the decisive step of dissolving the entire RAF Board of Directors, citing their inability to discharge statutory mandates effectively.

The dissolution came after a series of governance challenges that significantly undermined the RAF’s operational capacity, including costly litigation, inconsistent handling of executive suspensions, and frequent default judgments that have exacerbated the fund’s financial strain.

Key Governance Failures That Led to Board Dissolution

Minister Creecy identified several critical issues that necessitated the board’s removal:

• Protracted litigation: The RAF pursued costly legal battles regarding accounting standards, further straining financial resources
• Executive mismanagement: Inconsistent and reckless handling of CEO Collins Letsoalo’s suspension created institutional uncertainty
• Default judgments: Frequent court defaults against the RAF increased contingent liabilities
• Board divisions: Deep internal conflicts resulted in most resolutions passing only through casting votes rather than consensus
• Critical vacancies: Failure to fill essential positions including Chief Claims Officer and Head of Legal

New Interim Board Appointed to Restore Stability

Following Cabinet approval, Minister Creecy announced the appointment of an interim RAF board on August 8, 2025, for a six-month period. The new leadership team is tasked with providing strategic direction and ensuring financial and governance stability.

Interim Board Leadership:

• Kenneth Brown – Chairperson
• Nonhlanhla Mabusela-Aikhuere – Vice-Chairperson
• Additional members: Ntswaki Kutumela, Innocentia Mmule Pule, Richard Dyantyi, Mpontshane Alfred Mkhipheni, Alfredina Themba, and Neeshan Balton

Former CEO Collins Letsoalo’s Departure and Legal Dispute

The leadership crisis deepened with the departure of former CEO Collins Letsoalo, whose contract expired on August 6, 2025. Despite his exit, Letsoalo has referred a dispute with the RAF to the Commission for Conciliation, Mediation and Arbitration (CCMA), reportedly related to expectations of contract renewal.

Letsoalo’s tenure was marked by controversy, including his suspension in June 2025 for insubordination after refusing to appear before Parliament’s Standing Committee on Public Accounts (Scopa). His subsequent court challenge to overturn the suspension was dismissed by Judge Graham Moshoana, who ruled the suspension was lawful and reasonable.

Parliamentary Oversight and Investigation

The Standing Committee on Public Accounts (Scopa) has adopted terms of reference for a comprehensive inquiry into RAF financial matters, scheduled to begin in mid-September 2025. This parliamentary investigation aims to address the systemic issues that have plagued the fund and ensure accountability for past governance failures.

Road Accident Benefit Scheme Bill: A Path Forward

As part of broader reforms, the Department of Transport continues to pursue the Road Accident Benefit Scheme Bill, which proposes to introduce a no-fault system. This legislation aims to make it easier for road accident victims to access benefits without costly legal proceedings, potentially transforming how South Africa handles road accident compensation.

The proposed bill represents a shift toward a comprehensive social security scheme that would expand access to benefits for all road users, moving away from the current fault-based system that often results in lengthy legal battles.

Expert Advisory Committee and Future Reforms

Minister Creecy has established an expert advisory committee to support the development of a sustainable operational and governance model for the RAF. This panel of independent experts will review business processes and propose actionable recommendations to prevent future governance crises.

Additionally, the Special Investigating Unit (SIU) investigation under Proclamation 44 of 2024 may be expanded to cover recent events, ensuring comprehensive scrutiny of the fund’s operations.

Impact on Road Accident Victims

The governance crisis has had real-world consequences for road accident victims awaiting claim settlements. The RAF’s operational challenges have contributed to delays in processing claims, with some cases taking years to resolve. The new interim board faces the urgent task of addressing these backlogs while implementing systemic reforms.

The RAF Pretoria Regional Office has announced a block settlement drive to fast-track claims ready for settlement, signaling efforts to address the accumulated backlog of cases.

Looking Ahead: Challenges and Opportunities

The interim board faces several immediate priorities:

• Filling critical executive positions, particularly the CEO role
• Addressing governance deficiencies and control systems
• Reducing default judgments against the RAF
• Cooperating with ongoing SIU investigations
• Implementing recommendations from the expert advisory committee

The success of these reforms will be crucial for restoring public confidence in the RAF and ensuring that South Africa’s road accident victims receive timely and fair compensation. The interim board’s six-month mandate provides a critical window for implementing sustainable changes that can prevent future governance crises.

Conclusion

The Road Accident Fund’s leadership overhaul represents a significant moment in South African governance, highlighting both the consequences of institutional failure and the potential for meaningful reform. As the interim board begins its work, stakeholders across the country will be watching closely to see whether these changes can deliver the stability and effectiveness that road accident victims deserve.

The coming months will be crucial in determining whether the RAF can overcome its troubled past and emerge as a more efficient, transparent, and victim-focused institution. With parliamentary oversight, expert guidance, and new leadership in place, there is cautious optimism that the fund can fulfill its critical mandate of supporting South Africa’s road accident victims.