Road Accident Fund: Interim Board Appointed Amid Financial and Governance Crisis (August 2025 Update)

Road Accident Fund: Interim Board Appointed Amid Financial and Governance Crisis (August 2025 Update)

Date: August 8, 2025

The Road Accident Fund (RAF) in South Africa is undergoing significant changes following the appointment of an interim board by Transport Minister Barbara Creecy. This move comes after the previous board was dissolved in July 2025 due to governance and operational failures.

Key Developments

• Interim Board Appointed: Kenneth Brown, a seasoned official from the National Treasury and current board member of the Development Bank of Southern Africa, has been named interim chairperson. Nonhlanhla Mabusela will serve as deputy chair.
• Governance Failures: The previous board was dissolved for failing to act in the best interest of the RAF and not fulfilling its fiduciary duties. The new board is expected to address urgent governance and control issues, including frequent default court judgments against the RAF.
• Financial Crisis: The RAF faces a R25.5 billion deficit accumulated over the past five years, with liabilities far exceeding assets. In the 2023/24 financial year alone, the deficit was R1.5 billion. The fund is struggling to pay out claims and reduce its backlog, achieving only 16.91% of its target to clear three-year-old claims.
• Operational Challenges: The RAF has not had a head of legal services or a chief claims officer, contributing to inefficiencies and a backlog of unpaid claims. The new board is tasked with filling these critical executive positions.
• SIU Investigations: Minister Creecy has emphasized the need for the new board to cooperate fully with ongoing and future Special Investigating Unit (SIU) probes into the RAF.
• Parliamentary Oversight: Parliament’s Standing Committee on Public Accounts (SCOPA) is closely monitoring the RAF’s financial and operational performance, with recent briefings highlighting the urgency of reforms.

What’s Next for the RAF?

The interim board has six months to stabilize the RAF and lay the groundwork for a permanent leadership team. Their priorities include restoring public trust, improving financial management, and ensuring that accident victims receive timely compensation.

Stay tuned for more updates on the Road Accident Fund and other key developments in South Africa’s transport sector. Follow our blog for daily news and analysis.