Road Accident Fund in Turmoil: Board Dissolved, RABS Bill Revived, and Uncertain Future (7 August 2025)

Road Accident Fund in Turmoil: Board Dissolved, RABS Bill Revived, and Uncertain Future (7 August 2025)

Latest Developments:

• Board Dissolved: On 15 July 2025, Transport Minister Barbara Creecy dissolved the Board of Directors of the Road Accident Fund (RAF) due to ongoing governance and operational failures. Key issues included costly litigation, mishandling of the CEO’s suspension, frequent default judgments, board infighting, and failure to fill critical executive roles.
• Interim Measures: The Minister has asked the National Treasury to appoint an interim Accounting Authority and has started recruiting a new board and an expert advisory panel to review RAF operations. The Special Investigating Unit (SIU) may expand its investigation to cover recent events.
• RABS Bill Revival: Minister Creecy confirmed plans to reintroduce the Road Accident Benefit Scheme (RABS) Bill, aiming for a no-fault, defined benefit system for road accident victims. This proposal is controversial and faces strong opposition from civil society and victim advocacy groups.

Controversy and Criticism:

• The Association for the Protection of Road Accident Victims (Aprav) and other stakeholders argue that the RABS Bill is unaffordable, could exclude the poor, and may not address the root causes of RAF’s problems.
• Critics say the current RAF system could work if properly managed, and warn that the RABS Bill could increase government liabilities and reduce victims’ rights.
• The RAF is currently without a board, has a suspended CEO, and faces a massive backlog of claims. The SIU is investigating allegations of corruption and maladministration.

Key Trends to Watch:

• Major governance changes are underway at the RAF, but the future remains uncertain.
• The RABS Bill faces strong opposition and may not resolve the fund’s deep-rooted issues.
• The outcome will impact millions of South Africans who depend on the RAF for compensation after road accidents.

Sources:

• Official government statement (15 July 2025)
• Moneyweb (24 July 2025)

Conclusion: The Road Accident Fund is at a crossroads, with urgent reforms needed to restore stability and public trust. Stakeholders should monitor the progress of the new board, the SIU investigation, and the fate of the RABS Bill in Parliament.

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