Road Accident Fund in Crisis: New CEO, Funding Overhaul & Unpaid Claims — Latest News (November 2026)

The Road Accident Fund (RAF) continues to dominate South African headlines in late 2026, with a new CEO taking the helm, a government review into its funding model, a staggering R21.76 billion in unpaid claims, and growing calls for systemic reform. Here is a comprehensive roundup of the latest developments.

1. New CEO Waseem Carrim Takes Over — Vows to Restore Trust

Waseem Carrim officially became the RAF’s new CEO on 1 November 2026, becoming the fifth person to lead the fund in just over a year — a staggering rate of leadership turnover at an institution that is technically insolvent.

Carrim, a chartered accountant who previously served as CEO of the National Youth Development Agency (NYDA) and the National Student Financial Aid Scheme (NSFAS), inherits a fund in deep crisis. The RAF receives more than R50 billion per year from taxpayers — primarily through a fuel levy — yet its liabilities exceed R400 billion.

In an interview with Moneyweb, Carrim outlined his immediate priorities:

• Reforming the RAF’s financial model
• Rebuilding claims administration and tackling the severe claims backlog
• Controlling litigation costs
• Attacking fraud and corruption
• Restoring trust with lawyers, medical professionals, and claimants

“The claims backlog is quite severe,” Carrim acknowledged. “I’d like to at least present a plan on how claims will be brought under control and made more effective and efficient for the public.”

He also highlighted the importance of adopting the Road Accident Benefit Scheme (RABS) Bill, which would introduce a no-fault system and replace lump-sum payouts with regular, structured annuity payments — a move he believes could significantly reduce the fund’s massive liabilities and cash flow pressure.

“Everyone feels that they are not comfortable lodging claims with the RAF, and it is often done through the legal process. That low trust in the organisation has led to a scenario where everything must be litigated.” — Waseem Carrim, RAF CEO

On tackling corruption, Carrim was blunt: “People need to know that there are consequences for wrongdoing. You have to make very public examples of those involved in corruption so that there is a zero-tolerance approach.”

2. Government Rules Out Additional Funding — But Reviews the Model

Transport Minister Barbara Creecy has confirmed that the RAF will not receive additional government funding, citing the financial pressure already faced by South African motorists. Instead, the Department of Transport has launched a formal review into how the RAF is funded.

The minister has also confirmed that the department wants the RAF to pay the same benefits to all injured parties, regardless of their income or circumstances — a significant policy shift that could reshape how claims are calculated and settled.

3. RAF Funding Overhaul: What Could Change for Motorists?

The government is actively considering several options to restructure how the RAF is funded, and the implications for South African motorists could be significant:

Option A: Hybrid Funding Model

Deputy Transport Minister Mkhuleko Hlengwa appears to favour a hybrid model in which the RAF fuel levy could be reduced, while new revenue streams are introduced — including a contribution linked to vehicle licence renewals. Compulsory third-party insurance is also being considered as a separate option.

Option B: Higher Fuel Levy

In a potentially contradictory development, the RAF’s own annual report proposes asking National Treasury to increase the fuel levy from R2.25 to as much as R3 per litre. This would add further pressure to motorists already paying record fuel prices following a significant price hike in October 2026.

OUTA’s Warning

The Organisation Undoing Tax Abuse (OUTA) has warned that shifting the RAF contribution from the fuel pump to an annual vehicle payment could create an unrealistic financial burden. OUTA CEO Wayne Duvenage estimated that an annual vehicle-linked payment could be in the region of R1,000 to R2,000 per vehicle, though no official figures have been confirmed.

The Department of Transport has commissioned a cost-benefit analysis of the various options, which will accompany the planned RABS Bill when it is tabled.

4. Unpaid Claims Reach R21.76 Billion

As of 28 June 2026, the RAF had 37,622 finalised claims awaiting payment, totalling a staggering R21.76 billion. By the end of June, the total owed to claimants on already-settled claims had grown to R22.18 billion — an increase of R3.62 billion in just three months.

Some victims have been waiting for up to 10 years for compensation legally owed to them, according to the vice chairman of APRAV, Pieter de Bruyn. The RAF is increasingly spending more money while helping fewer South Africans — a deeply troubling trend.

5. Supreme Court of Appeal Ruling: Revert to RAF 1 Form

A Supreme Court of Appeal (SCA) judgment on 30 April 2026 directed the RAF to revert to the 2008 RAF 1 Form for claims processing. This ruling triggered a surge of almost 160,000 revived claims, adding enormous pressure to an already overwhelmed system.

In response, the RAF has been moving to curb default judgments and manage the flood of incoming claims.

6. Constitutional Court Rules on Foreign Claimants

In September 2026, the Constitutional Court (ConCourt) ruled against the RAF’s attempts to exclude undocumented foreign nationals from claiming compensation. The ruling confirmed that all persons injured in road accidents on South African soil — regardless of their immigration status — are entitled to claim from the RAF.

7. RAF Inquiry: Corruption and Incompetence Under the Microscope

A formal inquiry into the RAF has highlighted both serious corruption concerns and, arguably more worryingly, deep-seated incompetence. Former CEO Collins Letsoalo, who was suspended in April 2026 over a controversial lease deal, now faces charges before Parliament’s Standing Committee on Public Accounts (Scopa).

Letsoalo was accused of fostering a culture of fear, splurging on personal security, and breaching governance protocols. His suspension is among several that have cost the RAF — and by extension, South African taxpayers — significant sums in continued salaries and benefits.

Key Takeaways: What Does This Mean for You?

• If you’ve been injured in a road accident: You are legally entitled to claim from the RAF, but be prepared for delays. Engage a qualified attorney to assist with your claim.
• If you’re a motorist: Expect potential changes to how the RAF levy is collected — whether through higher fuel prices or a new vehicle licence contribution.
• If you’re a taxpayer: The RAF’s R400+ billion liability is a significant risk to South Africa’s public finances. Structural reform is urgently needed.
• Watch this space: The RABS Bill, when tabled, will be a landmark piece of legislation that could fundamentally change how road accident victims are compensated in South Africa.

Conclusion

The Road Accident Fund remains one of South Africa’s most pressing institutional crises. With a new CEO in place, a government funding review underway, billions in unpaid claims, and landmark court rulings reshaping the landscape, 2026 is shaping up to be a pivotal year for the RAF.

Whether Waseem Carrim can deliver on his promises of reform, transparency, and restored trust remains to be seen. But one thing is clear: the status quo is unsustainable, and South Africans — both road users and taxpayers — deserve better.

Stay tuned to this blog for daily updates on the Road Accident Fund and other key South African legal and financial news.