Road Accident Fund in Crisis: Board Dissolved and RABS Bill Sparks Fierce Debate (July 26, 2025)

Road Accident Fund in Crisis: Board Dissolved and RABS Bill Sparks Fierce Debate (July 26, 2025)

Latest developments in the Road Accident Fund (RAF) saga have sent shockwaves through South Africa’s transport and legal sectors. Here’s what you need to know about the ongoing crisis, the government’s response, and the fierce debate over the future of road accident compensation.

RAF Board Dissolved Amid Governance Failures

• On July 15, 2025, Minister of Transport Barbara Creecy officially dissolved the Board of Directors of the Road Accident Fund (RAF) due to persistent governance and operational failures.
• Key issues included costly litigation over accounting standards, mishandling of executive suspensions, frequent default judgments, board infighting, and failure to fill critical executive positions.
• The Minister has requested the National Treasury to appoint an interim Accounting Authority and has started recruiting a new board. An expert advisory committee will also review RAF business processes.

Revival of the RABS Bill Sparks Public Outcry

• The Department of Transport is moving to finalize the Road Accident Benefit Scheme (RABS) Bill, which would replace the current fault-based compensation model with a no-fault system.
• This move has triggered fierce backlash from civil society organizations, legal experts, and advocacy groups, who argue that the bill has been rejected multiple times and would strip victims of legal recourse, cap compensation, and limit access to justice.
• Legal experts warn that the RABS Bill does not address the root causes of RAF dysfunction, such as poor management and lack of accountability, and may face constitutional challenges.

Financial and Legal Challenges Continue

• Despite some financial improvements reported by the RAF, courts continue to issue significant awards to claimants, highlighting ongoing challenges in compensation and fund management.
• The Congress of South African Trade Unions (COSATU) supports the Minister’s reform efforts, calling the RAF a “disaster site” and urging bold action.
• The Department of Transport states that the RABS Bill aims to reduce litigation, cut administrative costs, and accelerate claim finalization.

What’s Next for the RAF?

The future of the Road Accident Fund remains uncertain as stakeholders debate the best path forward. Transparent, victim-centered reform is essential to restore public trust and ensure fair compensation for road accident victims in South Africa.

Have your say: What do you think about the proposed changes and the future of the RAF? Share your views in the comments below.

Sources: South African Government, Saturday Star