Road Accident Fund in Crisis: New CEO, Legislative Reforms & R400 Billion Debt — Latest News (November 2026)

Road Accident Fund South Africa: Key Developments You Need to Know

South Africa’s Road Accident Fund (RAF) continues to dominate headlines as the embattled institution faces a perfect storm of financial insolvency, governance failures, legislative reform, and a new leadership appointment. Here is a comprehensive roundup of the most important RAF news and developments as of November 2026.

1. New CEO Takes the Helm: Waseem Carrim Vows to Rebuild Trust

One of the most significant recent developments is the appointment of Waseem Carrim as the new 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 extraordinary 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. One is a strong and supportive transport minister [Barbara Creecy]. Two is an interim board led by very capable individuals. And then also a five-year mandate to turn things around.”

Carrim’s immediate priorities include:

• Reforming the RAF’s financial model to address its R400+ billion in liabilities
• Rebuilding claims administration and tackling the severe claims backlog
• Controlling litigation costs that are draining the fund
• Attacking fraud and corruption head-on with zero tolerance
• Restoring trust with lawyers, medical professionals, and claimants

Carrim also floated the idea of annuity payments instead of once-off lump-sum payouts, arguing this would better match revenue with expenditure and reduce cash flow pressure on the fund.

2. The Financial Crisis: R400 Billion in Liabilities and R21.76 Billion in Unpaid Claims

The RAF’s financial situation remains dire. The fund is technically insolvent, with total liabilities exceeding R400 billion against annual revenue of just over R50 billion — primarily sourced from the R2.25 per litre fuel levy paid by South African motorists.

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 fund owed claimants R22.18 billion on already-settled claims — an amount that grew by R3.62 billion in just three months.

The Democratic Alliance (DA) has been vocal in its criticism, pointing out that the RAF has 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 almost two years

DA spokesperson 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.”

3. Fuel Levy Debate: Should It Be Scrapped or Increased?

The RAF has reportedly asked 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 hit a record R30 per litre. This has sparked fierce public debate.

Transport Minister Barbara Creecy has ruled out additional government funding for the RAF, stating that motorists are already under severe financial pressure and that the priority must be addressing the fund’s management and financial challenges.

New CEO Waseem Carrim is cautious about scrapping the levy entirely: “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.”

Government is also reportedly considering cutting or scrapping the RAF fuel levy as part of broader funding reform proposals, with supplementary funding models being explored beyond the traditional petrol and diesel levy.

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

Parliament’s Standing Committee on Public Accounts (SCOPA), led by Chairperson Songezo Zibi, has intensified 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.
• Former CEO Collins Letsoalo, who was suspended in April 2025 over a controversial lease, faces SCOPA charges and was accused of fostering a culture of fear and excessive personal security spending.

SCOPA’s investigation revealed that a lack of proper leadership, poor administration, and inadequate oversight played a significant role in the RAF’s current state of dysfunction.

5. Landmark Court Rulings Protect Claimants’ Rights

The courts have delivered several important rulings in favour of accident victims in 2026:

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 overstepped their legal authority by imposing overly restrictive documentation criteria 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 Claimants (September 2026)

The Constitutional Court (ConCourt) slammed the door on RAF 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.

6. Legislative Reforms: RAF Act Amendments in the Pipeline

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 — introducing alternative dispute resolution mechanisms
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 move through the full legislative process before becoming law. Motorists and accident victims should continue to work from the existing RAF legislation until changes are formally enacted.

7. The Road Accident Benefit Scheme (RABS) Bill: A No-Fault Future?

New CEO Waseem Carrim believes the key to turning the RAF around is adopting the Road Accident Benefit Scheme (RABS) Bill, which would introduce a no-fault system and replace lump-sum payouts with regular, structured payments.

Under a no-fault system, those injured in road accidents would receive benefits regardless of who caused the crash, eliminating lengthy litigation and liability disputes that currently cost the fund billions of rands annually.

Carrim explained: “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, even if claimants must use their claims to pay attorneys.”

8. Settlement Hub Proposal: Fast-Tracking the Claims Backlog

In July 2026, SCOPA heard proposals for a national Settlement Hub — a fast-track mechanism to process trial-ready claims and ensure payout times are significantly reduced. The Association of Personal Injury Lawyers (APRAV) supported this proposal as a practical solution to the tens of thousands of claims stuck in the system.

The proposal also calls for the appointment of a suitably qualified Head of Legal at the RAF to provide proper leadership in navigating the intricacies of the RAF Act and ensuring the fund’s statutory mandate is achieved in a cost-effective manner.

What This Means for South African Road Accident Victims

If you have been injured in a road accident in South Africa, here is what you need to know right now:

• Your right to claim remains intact. Despite the RAF’s financial difficulties, the fund is legally obligated to compensate qualifying claimants for injuries caused by negligent driving.
• Previously rejected claims may be re-lodgeable. If your claim was rejected under the restrictive Board Notice requirements, the SCA ruling opened a window for re-lodging.
• Foreign nationals retain the right to claim. The Constitutional Court has confirmed that immigration status does not bar a person from claiming RAF benefits under the current Act.
• Delays in payment are a known issue. With over R21 billion in unpaid settled claims, expect delays — but do not abandon your claim.
• Seek legal advice. Given the complexity of the RAF system and ongoing legislative changes, consulting a qualified personal injury attorney is strongly recommended.

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, experienced CEO with a five-year mandate and political backing
• Strong parliamentary oversight through SCOPA holding former leadership accountable
• Court rulings that protect claimants’ constitutional rights
• Legislative reform proposals that could make the system more sustainable
• Growing political will to address the fund’s structural problems

As legal analysts noted in October 2026: “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.”

This article is for informational purposes only and does not constitute legal advice. If you have been involved in a road accident and wish to lodge a claim with the Road Accident Fund, please consult a qualified attorney.