Road Accident Fund (RAF) News Update: Leadership Crisis, Legal Battles, and Financial Challenges – June 24, 2025

Road Accident Fund (RAF) News Update – June 24, 2025

Summary: The Road Accident Fund (RAF) in South Africa continues to face significant challenges, with recent news highlighting a leadership crisis, ongoing legal battles, and financial mismanagement. Here are the key developments as of June 24, 2025:

1. Leadership Crisis: CEO Collins Letsoalo Suspended

• RAF CEO Collins Letsoalo has been suspended and is contesting the board’s decision in the Pretoria high court (BusinessLive).
• Letsoalo was placed on special leave on May 27, 2025, and formally suspended in June (IOL).
• He claims the board did not promise him a second term and is seeking to block the advertisement of his position.

2. Financial Mismanagement and Default Judgments

• The RAF is reportedly losing millions due to default court judgments, with lawyers not being sent to court (AllAfrica).
• There is a growing crisis of vacant executive posts and allegations of financial mismanagement (Sunday World).

3. Legal Disputes with SARS

• The RAF has secured an interim court order blocking SARS from deducting R5.1 billion from its fuel levy to pay an Eskom rebate (IOL).
• RAF has applied for a contempt of court order against SARS, claiming continued deductions in defiance of the court order (Moneyweb).

4. Broader Issues: Accountability and Justice

• Parliament and oversight committees are demanding answers from the RAF regarding its management and accountability (SCOPA hearing).
• The situation has raised concerns about the future stability and effectiveness of the RAF.

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Stay tuned for further updates as the situation develops.