Road Accident Fund in Crisis: Key Developments, Reforms & What It Means for South Africans (November 2026)

The Road Accident Fund (RAF) remains one of South Africa’s most talked-about and troubled institutions in 2026. From a new CEO vowing sweeping reforms, to Parliament raising alarm bells over a R22-billion unpaid claims backlog, to landmark court rulings protecting accident victims — the RAF is at a critical crossroads. Here is a comprehensive roundup of the latest news, key developments, and what they mean for South Africans.

1. New CEO Waseem Carrim Takes the Helm — Promises to Rebuild Trust

One of the most significant recent developments is the appointment of Waseem Carrim as the new permanent CEO of the Road Accident Fund, effective 1 November 2026. Carrim — a chartered accountant and former CEO of both the National Youth Development Agency (NYDA) and the National Student Financial Aid Scheme (NSFAS) — becomes the fifth RAF CEO in just over a year, highlighting the severe leadership instability at the fund.

In an interview with Moneyweb, Carrim acknowledged the scale of the challenge but expressed cautious optimism:

“I think there are three things that make me believe the situation can be turned around: a strong and supportive transport minister, an interim board led by very capable individuals, and a five-year mandate to turn things around.”

His immediate priorities include:

• Reforming the RAF’s financial model to reduce dependence on the fuel levy
• Rebuilding claims administration and reducing the backlog
• Tackling fraud and corruption head-on
• Restoring trust with claimants, lawyers, and medical professionals
• Exploring annuity-based payments instead of once-off lump-sum payouts

Carrim is also a strong advocate for the Road Accident Benefit Scheme (RABS) Bill, which would introduce a no-fault compensation system — meaning accident victims would receive benefits regardless of who caused the crash, eliminating costly and lengthy litigation.

2. The Financial Crisis: R22 Billion in Unpaid Claims and Growing

The RAF’s financial situation is dire. According to the latest figures:

• As of 28 June 2026, the RAF had 37,622 finalised claims awaiting payment, totalling R21.76 billion.
• By the end of June, the total owed to claimants had grown to R22.18 billion — an increase of R3.62 billion in just three months.
• The RAF pays out approximately R25 billion per month in claims while receiving only R4 billion into its coffers monthly.
• The fund’s total liabilities exceed R400 billion, while it receives more than R50 billion per year from the fuel levy.

Parliament’s Portfolio Committee on Transport, briefed on 7 October 2026, expressed serious concern about these liquidity challenges. Committee Chairperson Mr Donald Selamolela noted: “We are going to support the entity and walk this journey together, especially as it addresses the challenges it faces.”

3. No Additional Government Funding — Minister Creecy Holds the Line

Transport Minister Barbara Creecy has firmly ruled out additional government funding for the RAF. Speaking in October 2026, she stated that motorists are already under significant financial pressure and that the priority must be addressing the fund’s management and financial challenges — not simply injecting more money.

This position aligns with the Democratic Alliance’s (DA) stance. The DA has been vocal in its criticism, pointing out that the RAF spent:

• R12.8 million on legal costs for just seven disciplinary hearings
• Close to R30 million on salaries for at least 16 suspended executives — some sitting at home on full pay for nearly two years

The DA’s Dr Chris Hunsinger MP stated: “More money will not fix the RAF. Its problem is not that motorists pay too little. It is how the money is managed.”

Notably, the RAF had requested National Treasury to raise the fuel levy by 75 cents per litre — from R2.25 to R3.00 per litre — at a time when fuel prices have already hit a record R30 per litre. This request has been met with widespread public and political resistance.

4. SCOPA Inquiry: Criminal Charges, Accountability, and Governance Failures

Parliament’s Standing Committee on Public Accounts (SCOPA), led by Chairperson Songezo Zibi, has been relentless in its scrutiny of the RAF throughout 2026:

• June 2026: SCOPA voted to lay formal criminal charges against the former RAF CEO following non-appearance and legal pushback regarding oversight mandates.
• July 2026: SCOPA recommended that former executives and board members be held personally liable to repay unaccounted funds spent during their tenure.

The inquiry exposed systemic governance failures, procurement irregularities, and questionable accounting practices. Former CEO Collins Letsoalo — who was suspended in April 2025 over a controversial lease — was accused of fostering a culture of fear and excessive personal security spending.

Incoming CEO Carrim has been blunt about the need for cultural change: “When leaders set the tone for wrongdoing — even small things like breaching the travel policy — you create a culture where people believe anything can go in this organisation.”

5. Landmark Court Rulings Protect Claimants

2026 has seen several important judicial decisions that have strengthened the rights of road accident victims:

SCA Ruling on Restrictive Board Notices (May 2026)

The Supreme Court of Appeal (SCA) upheld rulings declaring that the RAF and the Minister of Transport had overstepped their legal authority by imposing overly restrictive documentation requirements under Board Notices 271 and 302 of 2022 (the “new RAF 1 form”). Following this ruling, the RAF was compelled to allow claimants whose submissions were previously rejected to re-lodge their claims by 30 September 2026.

Constitutional Court Rules on Foreign Nationals (September 2026)

The Constitutional Court shut the door on the RAF’s attempts to exclude undocumented foreign nationals from claiming benefits. The court reaffirmed that the RAF Act refers to compensation for “any person” and that Parliament had not written an immigration-status limitation into the legislation. This ruling has significant implications for how the RAF processes claims from non-South African residents.

6. Legislative Reforms on the Horizon

The Department of Transport confirmed during a briefing to Parliament’s Portfolio Committee on Transport on 6 October 2026 that amendments to the RAF Act are being finalised. Acting Transport Director-General Mokonyama Mathabatha told committee members that amendments are being considered in four key areas:

1. Capped claims — limiting the maximum compensation payable
2. Rehabilitation — improving support for injured claimants
3. Mediation and conciliation — reducing costly court battles
4. Claims involving foreign nationals — addressing the legal complexities following court rulings

Mathabatha stated: “All these issues are in the amendment Act that we are finalising. The Act in its current form makes the scheme not sustainable.”

It is important to note that these amendments must still go through the full legislative process before becoming law. Motorists and accident victims should continue to work within the existing RAF framework for now.

7. Proposals to Clear the Claims Backlog

With tens of thousands of claims stuck in the system, several proposals have emerged to address the backlog:

• National Settlement Hub (July 2026): SCOPA heard proposals for a national hub to fast-track and clear thousands of trial-ready matters, reducing payout times significantly.
• Improved Claims Administration: Calls for the appointment of a suitably qualified Head of Legal to navigate the complexities of the RAF Act.
• Annuity Payments: New CEO Carrim has floated the idea of structured annuity payments instead of once-off lump sums to better match revenue with expenditure.
• No-Fault System (RABS Bill): The Road Accident Benefit Scheme Bill, if adopted, would eliminate the need to prove fault — dramatically reducing litigation costs and delays.

8. The Fuel Levy Debate: Should It Be Scrapped?

The RAF is primarily funded through a fuel levy of R2.25 per litre, which adds roughly 7–8% to the pump price. With fuel prices at record highs and the rise of electric vehicles reducing future levy income, the sustainability of this funding model is under serious scrutiny.

Minister Creecy has indicated that the RAF needs to reduce its dependence on the fuel levy. Some civil society groups have called for it to be scrapped entirely, while others argue this would be premature without an alternative funding mechanism in place.

Incoming CEO Carrim is cautious: “I don’t think in the short term you could scrap the fuel levy. But I do think the operating model of the fund needs some degree of rethink.”

What This Means for South Africans: Key Takeaways

If you have been involved in a road accident or are considering lodging a RAF claim, here is what you need to know right now:

• ✅ Claims are still being processed, but expect significant delays due to the backlog.
• ✅ Previously rejected claims under the restrictive Board Notices may be eligible for re-lodging — consult a qualified attorney.
• ✅ Foreign nationals cannot be excluded from claiming solely on the basis of immigration status, per court rulings.
• ⚠️ Legislative changes are coming but are not yet law — the current RAF Act still applies.
• ⚠️ The fuel levy is not being scrapped in the short term, despite public pressure.
• ⚠️ Unpaid claims continue to grow — if you have a settled claim awaiting payment, follow up with your attorney regularly.

Looking Ahead: Reasons for Cautious Optimism

Despite the scale of the crisis, there are genuine reasons to believe the RAF can be turned around:

• A new, permanent CEO with a clear reform mandate and a five-year term
• Strong parliamentary oversight through SCOPA and the Portfolio Committee on Transport
• Court rulings that have reaffirmed claimants’ constitutional rights
• Political will from Minister Creecy to pursue structural reform rather than simply throwing money at the problem
• Concrete proposals such as the Settlement Hub and the RABS Bill on the table

As legal experts noted: “We enter 2027 with a clearer path toward an equitable, well-governed, reliable and fully functional Road Accident Fund, settling and paying claims, all the while affording the ‘widest possible protection to all road users’ as prescribed in the RAF Act.”

Stay informed about the latest Road Accident Fund news and developments by bookmarking this page. If you need assistance with a RAF claim, consult a qualified personal injury attorney who specialises in RAF matters.