Road Accident Fund Update: Latest Developments and Legal Battles in December 2025

The Road Accident Fund (RAF) continues to make headlines as South Africa’s troubled state entity faces ongoing challenges with leadership disputes, financial mismanagement, and operational difficulties. Here’s a comprehensive overview of the latest developments affecting the RAF in December 2025.

Collins Letsoalo’s Legal Battles Continue

Former RAF CEO Collins Letsoalo’s controversial tenure continues to cast a shadow over the organization. The Supreme Court of Appeal (SCA) recently dismissed an application for reconsideration regarding the dismissal of former senior IT advisor Mothusi Lukhele, marking another legal setback for Letsoalo and the RAF.

The case stems from November 2021 when Lukhele was fired just three months into his three-year contract. Letsoalo had initially appointed Lukhele as acting Chief Information Officer following a significant cyber-attack, only to dismiss him later for allegedly failing to comply with employment conditions, including providing proof of police clearance certificates.

The SCA ruled that any order regarding Lukhele’s contract would have no practical effect since his contract ended in July 2024, effectively closing this chapter of the ongoing legal disputes.

Parliamentary Inquiry Reveals Systemic Issues

The Standing Committee on Public Accounts (SCOPA) inquiry into the RAF has uncovered significant problems within the organization, including:

• Dodgy tenders and procurement irregularities
• Oversight failures at multiple levels
• A culture of fear among staff members
• Financial mismanagement spanning multiple years

The probe, launched in 2025, initially focused on financial matters but has revealed much deeper organizational problems affecting the fund’s ability to serve road accident victims effectively.

Executive Suspensions and Leadership Changes

Transport Minister Barbara Creecy has defended the precautionary suspension of the RAF’s acting CEO and chief finance officer, describing these actions as “not punitive but necessary for stability.” The minister also dissolved the RAF Board of Directors in July 2025, signaling significant governance reforms.

These leadership changes come amid ongoing concerns about the fund’s management and its ability to fulfill its mandate of compensating road accident victims.

Operational Updates and Office Relocation

In a practical development, the RAF announced it is relocating its head office from Centurion to Hatfield in Tshwane, effective January 5, 2026. All services will be available at the new location, though this move comes at a time when the organization faces significant operational challenges.

Ongoing Concerns About Foreign Payments

Questions continue to arise about RAF payments to non-citizens, with various sources claiming R18 billion has been paid out to foreigners from 2019/20 to 2023/24. However, fact-checkers have noted that there is limited evidence supporting claims that foreigners are “bleeding the RAF dry.”

Court Criticisms and Settlement Issues

The High Court has criticized the RAF for its handling of legal matters, particularly regarding how far the organization has gone to protect its former CEO. Additionally, the Supreme Court of Appeal confirmed stringent requirements for settlement reversals in the case of Road Accident Fund v Sarah Wilson Lewis [2025], protecting the integrity of legal settlements.

Festive Season Safety Campaign

Despite its internal challenges, the RAF continues its public safety mission, urging road users to be aware and avoid causing trauma during the festive season. The organization released a media statement on December 9, 2025, emphasizing road safety during the holiday period.

Looking Ahead: Reform and Recovery

The RAF faces significant challenges in 2026, including:

• Implementing governance reforms following board dissolution
• Addressing findings from the parliamentary inquiry
• Resolving ongoing legal disputes
• Improving service delivery to accident victims
• Restoring public confidence in the organization

Impact on Road Accident Victims

While the RAF deals with internal issues, road accident victims continue to face delays and challenges in receiving compensation. The organization’s troubles have real-world consequences for South Africans who depend on the fund for medical care and financial support following traffic accidents.

Conclusion

The Road Accident Fund’s challenges in 2025 highlight the need for comprehensive reform and improved governance. As the organization moves into 2026 with new leadership and relocated offices, stakeholders will be watching closely to see if meaningful changes can be implemented to better serve South African road users.

The ongoing legal battles, parliamentary inquiries, and leadership changes represent both challenges and opportunities for the RAF to rebuild and refocus on its core mission of supporting road accident victims across South Africa.

Stay updated with the latest RAF developments and South African road safety news by following our regular updates.