Road Accident Fund in Crisis: R21.7 Billion in Unpaid Claims, Court Battles & New Levy Proposals – August 2026 Update

The Road Accident Fund (RAF) continues to dominate South African headlines in 2026, with a mounting backlog of unpaid claims, escalating court battles, governance concerns, and a controversial new funding proposal that could hit every motorist’s pocket. Here is a comprehensive roundup of the latest developments surrounding the RAF as of August 6, 2026.

R21.7 Billion in Finalised Claims Still Unpaid

In a stark parliamentary revelation, Transport Minister Barbara Creecy confirmed that the RAF is sitting on a staggering R21.76 billion in finalised but unpaid claims as at June 28, 2026. According to the RAF’s internal Requested Not Yet Paid (RNYP) Claims Register, a total of 37,622 claims involving 47,949 payment transactions remain outstanding.

The disclosure came in response to a parliamentary question from ActionSA MP Alan Beesley, who asked whether the RAF maintained an accurate record of all finalised but unpaid claims.

Minister Creecy outlined the primary reasons for the payment delays:

• Outstanding compliance checks – affecting claims worth nearly R11 billion
• Verification delays – affecting claims worth more than R9.1 billion
• Missing documents – affecting claims worth approximately R1.7 billion

Alarmingly, the majority of these outstanding claims — 36,442 in total — date back to the period between 2007 and 2026, highlighting a systemic failure that has persisted for nearly two decades.

Court Action Over 430+ Unpaid Finalised Claims

The RAF’s non-payment crisis has spilled into the courts. In June 2026, de Broglio Attorneys launched a formal court application against the RAF following the continued non-payment of more than 430 finalised claims, despite settlement agreements having been concluded or court orders already granted.

The application seeks a court order compelling the RAF to provide full reasons and detailed explanations for its failure to pay within the prescribed 180-day payment period. In some cases, claimants have reportedly waited more than two years for compensation that was already legally agreed upon or ordered by a court.

Attorney Michael de Broglio highlighted the human cost of these delays:

“These are not numbers on a spreadsheet. They are individuals whose lives have already been fundamentally changed by serious road accidents. Once a matter is settled or a court order is granted, there is a legitimate expectation that payment will follow within a reasonable and defined period.”

Among the affected claimants is Rory Meintjies, a 29-year-old who has been confined to a wheelchair since a devastating road accident four years ago left him with a spinal cord injury and permanent paralysis from the waist down. Despite a court award already being granted in his case, he and his family are still waiting for payment.

The court application comes amid heightened scrutiny of the RAF’s governance, following parliament’s Standing Committee on Public Accounts (Scopa) laying criminal charges against former RAF CEO Collins Letsoalo for failing to comply with a parliamentary summons.

High Court Issues Punitive Cost Order Against RAF

In May 2026, the Western Cape High Court issued a punitive cost order against the RAF and directed it to pay road accident victim Catherine Yiannakis — represented by Advocate Roxanne van Wyk — R2,231,081.34 for past hospital and medical expenses within 180 days.

Yiannakis was injured as a pedestrian in a motor vehicle collision on 12 February 2018 and has since been living in a long-term care facility for nearly eight years. The RAF had refused to compensate her for past medical costs on the basis that her medical aid (Discovery Health) had already covered a portion of those expenses — a position that had been repeatedly rejected by the courts.

Acting Judge M Louw was scathing in her assessment of the RAF’s conduct:

“It is wholly unacceptable that the RAF persists in defending these hopeless matters, thereby wasting public resources, driving up legal costs for both the RAF and claimants, and compelling claimants to incur unnecessary expenses to enforce rights already established.”

The judge found that the RAF’s opposition was “frivolous” and that its conduct — including a “flimsy defence” and “total disregard for established obligations” — warranted a punitive costs order. The RAF’s applications for leave to appeal had previously been refused by both the Supreme Court of Appeal (SCA) and the Constitutional Court.

Signs of Recovery? Parliament Cautiously Optimistic

Despite the grim headlines, the Chairperson of the Portfolio Committee on Transport, Mr Donald Selamolela, expressed cautious optimism in February 2026, stating that the RAF is showing signs of recovery.

“We are satisfied that indeed there is work happening to improve governance and stabilise the operation of the RAF,” Selamolela said. “The negativity around how the entity is viewed by the public should cease, and our focus should be to service the claimants.”

Deputy Minister of Transport Mkhuleko Hlengwa likened the reform process to “fixing an aeroplane while airborne,” acknowledging the complexity of overhauling a deeply troubled institution while it continues to operate. He confirmed that direct claims remain an immediate area of attention.

The committee called on the Department of Transport to move swiftly to review the RAF’s legislation to close all loopholes that have been exploited to delay or avoid payments.

New Vehicle Levy Proposed to Fund the RAF

One of the most significant and controversial developments in recent weeks is the government’s consideration of a new mandatory vehicle-linked levy to help fund the cash-strapped RAF.

Transport Minister Creecy confirmed that the Department of Transport, in collaboration with the RAF, has initiated a structured review of the RAF’s funding framework. Among the options being considered is a separate mandatory fee attached to annual vehicle licence renewals or initial vehicle registrations.

The proposal has sparked debate among motorists and industry experts. Mike Pashut, Founder of Change Car, noted that the rise of electric vehicles (EVs) is a key driver behind the funding model review. Since EVs do not consume petrol or diesel, they currently contribute nothing to the RAF through the existing fuel levy — creating a growing funding gap as EV adoption increases.

Currently, the RAF is primarily funded through a fuel levy on petrol and diesel. Critics argue that a vehicle-linked fee would be a fairer and more sustainable long-term solution, while others warn it could add to the already significant financial burden on South African motorists.

The Public Servants Association (PSA) has already rejected the proposed new vehicle tax, and public debate on the matter is expected to intensify in the coming months.

Key Trends and Takeaways

The latest RAF news reveals several critical trends that South Africans — particularly road accident victims, motorists, and legal professionals — should be aware of:

1. Systemic payment failures: The R21.7 billion backlog is not a new problem. Tens of thousands of claims dating back to 2007 remain unpaid, pointing to deep-rooted administrative and financial dysfunction.
2. Escalating legal action: Law firms and individual claimants are increasingly turning to the courts to force the RAF to honour its obligations, resulting in costly punitive orders that ultimately burden the taxpayer.
3. Governance under scrutiny: The criminal charges against the former RAF CEO and ongoing Scopa investigations signal that accountability is being demanded at the highest levels.
4. Funding model under review: The shift away from a pure fuel-levy model toward a vehicle-linked fee reflects the reality of a changing automotive landscape and the RAF’s unsustainable financial position.
5. Reform efforts underway: While Parliament has expressed cautious optimism, the pace of reform remains a concern, with the committee urging the Department of Transport to accelerate legislative changes.

What Should RAF Claimants Do?

If you have a pending or finalised RAF claim that has not been paid, here is what you should know:

• The RAF is legally required to pay finalised claims within 180 days.
• If your claim has not been paid within this period, you may have grounds to approach the courts for relief.
• Consult a qualified RAF attorney who can advise you on your rights and the best course of action.
• Keep all documentation related to your claim, including settlement agreements and court orders, as these will be critical in any legal proceedings.

Conclusion

The Road Accident Fund remains one of South Africa’s most troubled state entities, grappling with a massive unpaid claims backlog, governance failures, and an unsustainable funding model. While there are tentative signs of reform, the pace of change is far too slow for the tens of thousands of accident victims who are still waiting for compensation they are legally owed.

The proposed vehicle-linked levy, if implemented, could provide a more sustainable funding base — but it will also raise costs for millions of South African motorists. As the debate unfolds, one thing is clear: the RAF urgently needs structural reform to fulfil its mandate of compensating road accident victims fairly and timeously.

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