Road Accident Fund in Crisis: CEO Suspended Amid Legal and Financial Turmoil (June 2025 Update)

Road Accident Fund in Crisis: CEO Suspended Amid Legal and Financial Turmoil (June 2025 Update)

Date: June 14, 2025

The Road Accident Fund (RAF) in South Africa is facing one of its most turbulent periods in recent memory, with a series of high-profile developments making headlines this week.

CEO Collins Letsoalo Suspended Amid Corruption Probe

RAF CEO Collins Letsoalo, who has led the fund since 2020, was placed on special leave on May 27, 2025, following a preliminary Special Investigation Unit (SIU) report that alleged irregularities in high-value RAF contracts. This decision was escalated to a full suspension on June 3, after Letsoalo was charged with ‘insubordination’ for refusing to appear before the Standing Committee on Public Accounts (SCOPA).

Letsoalo claims his suspension is part of a larger conspiracy by legal and judicial elites to remove him after he attempted to dissolve what he described as a ‘greedy and corrupt’ group of lawyers. He is contesting the suspension in court, with an urgent hearing set for June 17, 2025. Letsoalo has also raised concerns for his personal safety, stating that his security detail has been withdrawn and that he has received threats, including from the taxi sector.

For more details, see the original article: News24: RAF suspended CEO – Collins Letsoalo speaks out at The Portfolio Committee on Transport.

RAF Loses Millions in Court Due to Chaotic Litigation

In a separate but related development, the RAF has come under fire for its chaotic approach to litigation, resulting in millions of rands lost in default court judgments. According to a recent GroundUp report, the RAF often fails to send lawyers to court, leading to unopposed claims and default judgments. When the RAF attempts to rescind these judgments, it frequently loses, incurring further costs.

Judge Jan Swanepoel of the Gauteng High Court in Pretoria criticized the RAF for its mismanagement, stating: “The main problem lies with the RAF and its chaotic approach to litigation… huge sums of public money are lost.” In the week of May 5, 2025, default judgments against the RAF totaled at least R75 million. The judge also noted that the termination of panel attorneys years ago has left the RAF’s legal system in ongoing disarray.

These issues have led to calls for urgent reform, with Parliament’s Portfolio Committee on Transport holding follow-up meetings to address the crisis.

Implications for the Public and the Future of the RAF

The current crisis at the RAF has serious implications for road accident victims, claimants, and the South African public. The fund’s financial instability and legal mismanagement threaten its ability to pay out legitimate claims and fulfill its constitutional duties. With the CEO’s suspension and ongoing investigations, the future direction of the RAF remains uncertain.

Stay tuned for further updates as the situation develops. For more information, see the original sources:

• News24: RAF suspended CEO – Collins Letsoalo speaks out at The Portfolio Committee on Transport
• GroundUp: Road Accident Fund is wasting millions on “chaotic” court cases

Keywords: Road Accident Fund South Africa, RAF news, Collins Letsoalo, legal mismanagement, default judgments, corruption, June 2025