Road Accident Fund Crisis: Parliamentary Inquiry Reveals R20 Billion Backlog as South Africa Faces Major Overhaul

Road Accident Fund Under Parliamentary Scrutiny Amid Financial Crisis

South Africa’s Road Accident Fund (RAF) is facing unprecedented scrutiny as Parliament’s Standing Committee on Public Accounts (SCOPA) launched a comprehensive oversight inquiry this week, revealing alarming allegations of maladministration and financial mismanagement that have left the fund with billions in unpaid claims.

SCOPA Inquiry Exposes Deep-Rooted Problems

The parliamentary inquiry, which began on Tuesday, October 7, 2025, is investigating evidence of maladministration, financial impropriety, and misuse of public funds at the RAF. 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 inquiry revealed that of 105,039 claims pre-assessed between July 2022 and March 2025, a staggering 75,990 (72%) were found to be non-compliant, while only 29,049 (28%) met the required standards.

R20 Billion Claims Backlog Threatens Fund’s Viability

The RAF currently faces an estimated R20 billion in outstanding claims, with R10.4 billion in unpaid claims at the end of the financial year to March 31, 2025. The total claims liability has reached R40.4 billion, raising serious questions about the fund’s long-term sustainability.

However, there has been some progress. The new interim RAF board announced that R3.3 billion was paid to claimants in just two weeks following stakeholder meetings. The board expects monthly payments to exceed R4 billion throughout the year as part of their reviewed business model.

Leadership Changes and Governance Reforms

Transport Minister Barbara Creecy dissolved the previous RAF board on July 15, 2025, and appointed an interim board on August 8, 2025. Kenneth Brown, a current board member of the Development Bank of Southern Africa with almost 20 years of National Treasury experience, was appointed as the interim board chair.

The department has also advertised for executive positions, including a new CEO position, with applications closing on September 28, 2025. These leadership changes are part of a broader turnaround strategy aimed at restoring credibility to the fund.

Road Accident Benefit Scheme (RABS) Bill: The Future of Compensation

The government is finalizing the Road Accident Benefit Scheme (RABS) Bill, which will replace the current RAF system with a new administrator called the Road Accident Benefit Scheme Administrator (RABS). This represents the fourth attempt at comprehensive RAF reform and promises a “claimant-centred” system with an alternative funding model.

Deputy Minister Hlengwa indicated that the RABS Bill is at the “tail end” of finalization and will soon go to Cabinet for onward transmission to Parliament.

Systemic Issues Contributing to the Crisis

The inquiry identified several factors contributing to the RAF’s problems:

• Post Office submission delays affecting claim processing
• Duplicitous lawyers who fail to communicate properly with clients
• Over-reliance on expectations of obtaining more money than initially offered
• Administrative inefficiencies causing processing backlogs

Impact on Claimants and Families

The interim board acknowledged being “acutely aware of the financial and emotional strain that delayed payments have caused claimants and their families.” Many accident victims have waited years for compensation, with some claims dating back decades.

The board has committed to resolving the situation “with urgency and transparency” and has implemented new controls to ensure supporting documentation is reviewed promptly to avoid further administrative delays.

Strengthened Monitoring and Accountability Measures

To address the crisis, the RAF has implemented several new measures:

• Comprehensive review of all claims outstanding beyond 180 days
• Strengthened monitoring systems to track paid and outstanding claims
• Bi-monthly reports to plaintiff attorneys and suppliers
• Direct engagement protocols for dispute resolution

Looking Ahead: Reform and Recovery

The RAF crisis represents a critical juncture for South Africa’s road accident compensation system. With parliamentary oversight, new leadership, and comprehensive legislative reform on the horizon, there is cautious optimism that the fund can be restored to financial health.

The success of these reforms will be crucial not only for the thousands of claimants awaiting compensation but also for maintaining public confidence in South Africa’s social safety net systems.

Key Takeaways

• Parliamentary inquiry reveals R20 billion in outstanding RAF claims
• 72% of claims found to be non-compliant during assessment
• New interim board paid R3.3 billion in two weeks
• RABS Bill promises comprehensive system overhaul
• Leadership changes aim to restore governance and credibility

The Road Accident Fund crisis continues to evolve, with further parliamentary hearings scheduled and ongoing efforts to clear the claims backlog. Stay updated with the latest developments as South Africa works to reform this critical compensation system.