Road Accident Fund in Crisis: R21.7 Billion Unpaid, New Vehicle Fee Proposed & Court Action Launched (August 2026)

Road Accident Fund South Africa: Latest News and Updates – August 2026

The Road Accident Fund (RAF) continues to dominate South African headlines in 2026, with a mounting financial crisis, billions in unpaid claims, proposed new funding mechanisms, and fresh court action against the embattled entity. Here is a comprehensive roundup of the most important RAF developments you need to know about right now.

1. R21.7 Billion in Finalised Claims Still Unpaid

In a bombshell parliamentary reply, Transport Minister Barbara Creecy confirmed that the Road Accident Fund is sitting on a staggering R21.76 billion in finalised claims that have not yet been paid out to accident victims.

The revelation came after ActionSA MP Alan Beesley asked whether the RAF maintained an accurate record of all finalised but unpaid claims. The Minister confirmed the existence of the Requested Not Yet Paid (RNYP) Claims Register, which tracks claims approved for payment but not yet settled.

Key figures from the RNYP register (as at 28 June 2026):

• 37,622 claims remain unpaid
• Total value: R21.76 billion
• Involving 47,949 payment transactions
• 36,442 of these claims date back to the period between 2007 and 2026

The Minister cited the following main reasons for delayed payments:

• 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

2. New Vehicle-Linked Fee Proposed to Rescue the RAF

As the RAF’s financial woes deepen, the government is exploring a new mandatory vehicle-linked fee to supplement the fund’s income. Transport Minister Creecy confirmed that the Department of Transport has initiated a structured review of the RAF’s funding framework.

The proposed model would see motorists pay a separate mandatory fee when renewing their vehicle licence disc or registering a vehicle for the first time. One key motivation is to ensure that electric vehicle (EV) owners – who currently do not pay the fuel levy – also contribute to the fund.

Currently, the RAF is primarily funded through a fuel levy of R2.25 per litre on petrol and diesel, generating more than R48 billion annually.

Opposition to the New Fee

• The Democratic Alliance (DA) strongly opposed the fee: The RAF is not in crisis because motorists are not paying enough. The RAF is in crisis because years of mismanagement, corruption, waste and poor governance have left it financially crippled.
• The Public Servants Association (PSA) warned the additional tax burden would be insensitive and unjustifiable given rising living costs.
• AfriForum called on the government to improve RAF management before considering new funding mechanisms.

An independent actuarial study found that no single funding model can fully resolve the RAF’s challenges, suggesting a multi-pronged approach will be necessary.

3. Court Action Launched Over 430+ Unpaid Finalised Claims

Legal firm de Broglio Attorneys has launched a formal court application against the RAF following the continued non-payment of more than 430 finalised claims – despite settlement agreements or court orders already being in place.

These are not numbers on a spreadsheet. They are individuals whose lives have already been fundamentally changed by serious road accidents. – Michael de Broglio, Director of de Broglio Attorneys

In some instances, claimants have waited more than two years for compensation already agreed to or ordered by a court. Tragically, some claimants have reportedly died before receiving their compensation.

Real Victims Behind the Statistics

• Rory Meintjies, 29, suffered a spinal cord injury and permanent paralysis in a road accident four years ago. Despite a court award being granted, he and his family are still waiting for payment.
• Sanet du Toit, a Gauteng business owner who nearly died in a head-on collision, has had to survive on overdrafts of around R500,000 over two years due to the RAF’s failure to pay.

4. RAF Shows Signs of Recovery – But Challenges Remain

Despite the grim headlines, Portfolio Committee on Transport Chairperson Donald Selamolela stated in February 2026 that the RAF is on the road to recovery, with governance improvements underway.

Deputy Minister of Transport Mkhuleko Hlengwa likened reforming the RAF to fixing an aeroplane while airborne, reaffirming that reform remains a priority and that direct claims processing is an immediate area of attention.

5. Governance Scandals and Accountability Issues

• Parliament’s Scopa laid criminal charges against former RAF CEO Collins Letsoalo for failing to comply with a parliamentary summons.
• Audit findings revealed millions spent on questionable items, including a R48,300 invoice for a single bucket hat.
• The RAF reportedly owes more than R518 billion in total liabilities, while holding assets worth only R33 billion.
• The RAF faced scrutiny over payouts to foreign nationals, with R1.48 billion paid across 1,608 claims associated with one law firm over 20 months.

What Does This Mean for RAF Claimants?

• The RAF is legally required to pay finalised claims within 180 days of settlement or court order.
• If your claim has been finalised but not paid, you may have legal recourse – consult a qualified RAF attorney.
• Ensure all your documentation is in order to avoid compliance and verification delays.
• The RAF’s Settlement Drive programme is active at hospitals across South Africa to resolve outstanding claims.

Key Trends to Watch

1. New vehicle licence fee legislation – Watch for the Department of Transport’s formal announcement.
2. Court outcomes – The de Broglio Attorneys application could set a precedent for RAF payment accountability.
3. RAF funding model reform – The actuarial review will shape the fund’s long-term sustainability.
4. Legislative reform – Parliament’s push to close loopholes could change how claims are processed.
5. Governance improvements – Criminal charges against former CEO Letsoalo and Scopa oversight will be key accountability indicators.

Conclusion

The Road Accident Fund remains one of South Africa’s most pressing public finance and social justice challenges. With R21.7 billion in unpaid finalised claims, a proposed new vehicle fee facing fierce opposition, court action over non-payment, and total liabilities exceeding R518 billion, the RAF’s crisis is far from over.

While there are cautious signs of governance improvement and reform momentum, the human cost of delays demands urgent and decisive action from all stakeholders. Stay informed and consult a qualified RAF attorney if you believe your rights as a claimant are being compromised.

Sources: IOL Business, Moneyweb, Africa24 TV, The Post, DA.org.za | Published: 8 August 2026