Road Accident Fund Update: Major Developments, Record Payouts, and Ongoing Challenges in 2026

RAF Makes Record R17+ Billion Payouts Amid Ongoing Controversies

As South Africa enters 2026, the Road Accident Fund (RAF) continues to dominate headlines with a mix of positive developments and persistent challenges. The state-owned entity, responsible for compensating road accident victims, has made significant strides in clearing its backlog while simultaneously facing ongoing legal battles and governance issues.

Record-Breaking Financial Performance

The RAF’s interim board has delivered on its commitment to aggressively tackle outstanding claims, with the fund paying out over R17.3 billion in just six months during 2025. This represents a dramatic improvement in payment performance, with the fund achieving record levels of claim settlements.

In October 2025 alone, the RAF reported its highest monthly payout of R5.5 billion, marking a significant milestone in the fund’s turnaround efforts. The organization even achieved a record single-day payout of R694 million, demonstrating its renewed focus on settling long-outstanding claims.

Collins Letsoalo’s Legal Legacy Continues

Despite former CEO Collins Letsoalo’s departure from the RAF, his controversial tenure continues to generate legal challenges for the fund. The most recent development involves former senior IT advisor Mothusi Lukhele, who was dismissed in November 2021 after just three months on the job.

The Supreme Court of Appeal recently dismissed an application by Letsoalo and the RAF to overturn a court ruling that had suspended Lukhele’s dismissal. The court ruled that since Lukhele’s contract had already expired, any order would have no practical effect, effectively ending this particular legal battle.

This case highlights the ongoing impact of management decisions made during Letsoalo’s tenure, including issues around:

• Cyber-security incidents requiring urgent intervention
• Employment contract disputes
• Background check and security clearance procedures

Executive Suspensions and Governance Challenges

The RAF’s interim board has taken decisive action by placing several senior executives on precautionary suspension, including the Acting CEO and CFO. This move has drawn scrutiny from the Portfolio Committee on Transport, which has questioned the timing and rationale behind these suspensions.

These governance challenges come at a time when the RAF is attempting to implement significant reforms and improve its operational efficiency.

Foreign National Claims Controversy

The RAF has faced criticism for paying out R546 million to foreign nationals injured on South African roads. Over the five-year period from 2019/20 to 2023/24, the fund paid out R18 billion to non-citizens, sparking debate about the fund’s obligations to foreign nationals versus South African citizens.

This controversy has raised questions about:

• The fund’s mandate and scope of coverage
• Resource allocation priorities
• The impact on local claimants’ waiting times

Financial Challenges Persist

Despite the improved payout performance, the RAF continues to face significant financial challenges:

• R40.4 billion in total claims liability
• R10.4 billion in unpaid claims at the end of the 2024/25 financial year
• Ongoing concerns about the fund’s long-term sustainability

The fund generates over R48 billion annually from the fuel levy, but this income continues to be insufficient to meet all obligations promptly.

Operational Changes and Reforms

The RAF has announced several operational changes for 2026:

• Office relocation: The head office is moving from Centurion to Hatfield in Tshwane from January 5, 2026
• Community outreach: Plans to extend services to far-flung areas that struggle to access RAF services
• Process improvements: Continued focus on reducing claim processing times

Looking Ahead: Reform and Recovery

As the RAF enters 2026, several key areas require attention:

Immediate Priorities:

• Maintaining the momentum in claim payouts
• Resolving governance and leadership stability issues
• Addressing the backlog of claims older than 180 days

Long-term Challenges:

• Ensuring financial sustainability
• Implementing comprehensive reforms
• Improving service delivery to all claimants

Impact on Road Accident Victims

For South Africans who have been injured in road accidents, these developments offer both hope and concern. While the record payouts demonstrate the fund’s improved capacity to settle claims, ongoing governance issues and financial constraints continue to affect processing times.

Legal experts note that waiting years for RAF payouts has become increasingly common, with serious consequences for victims who depend on these funds for medical treatment and income support.

Parliamentary Oversight

The Standing Committee on Public Accounts (SCOPA) continues its inquiry into RAF financial matters, with hearings scheduled to examine the fund’s executive and senior management decisions. This oversight is crucial for ensuring accountability and driving necessary reforms.

Conclusion

The Road Accident Fund’s journey through 2025 and into 2026 reflects both significant progress and persistent challenges. While record payouts demonstrate the fund’s potential when properly managed, ongoing legal battles, governance issues, and financial constraints highlight the need for sustained reform efforts.

For road accident victims and their families, the key question remains whether the RAF can maintain its improved performance while addressing the systemic issues that have plagued the organization for years. The coming months will be crucial in determining whether the current positive trajectory can be sustained.

Stay updated with the latest RAF news and developments by following our regular coverage of South Africa’s Road Accident Fund.