A major overhaul ahead at RAF is underway. The Road Accident Fund (RAF) has been struggling with financial challenges for years, but with the appointment of a new interim board in July 2025, major changes are on the horizon. Starting next month, the RAF will pay out R19 billion in long-overdue claims, marking a critical step in addressing its ongoing issues and restoring the public’s trust in its ability to compensate road accident victims.
RAF’s Financial Struggles
The major overhaul ahead at RAF comes in response to a serious financial crisis. As of March 2025, the RAF’s deficit had grown to R27.8 billion. This crisis is the result of stagnant fuel levy revenues, inefficient claims processing, and a growing backlog of unpaid claims. Many victims have been waiting for years for compensation.
In July 2025, Minister Barbara Creecy dissolved the previous RAF board due to governance failures, including an inability to resolve these financial issues. Now, the new interim board, led by Kenneth Brown, is working to stabilise the fund and ensure that road accident victims receive the compensation they deserve.
Interim Board’s Plan to Settle R19 Billion in Claims
As part of the Major Overhaul Ahead at RAF, the interim board has committed to paying R19 billion in overdue claims that have been waiting for more than 180 days. This comes after a High Court ruling that reduced the RAF’s payment moratorium to just 14 days, forcing the board to speed up the claims process.
Kenneth Brown, chairperson of the interim board, has assured the public: “The Major Overhaul Ahead at RAF is focused on resolving the backlog of claims. Our goal is to ensure that victims receive their compensation without unnecessary delays, and we are committed to modernising the RAF’s claims systems.”
Governance and Legal Challenges
While the Major Overhaul Ahead at RAF is promising, there are still significant challenges. The Auditor-General has raised concerns about the fund’s financial management, particularly its accounting practices. These issues raise questions about the RAF’s ability to continue as a viable entity without further reform.
Additionally, the Special Investigating Unit (SIU) is looking into allegations of fraud and mismanagement, including duplicate claims and irregular tenders. These ongoing legal investigations complicate the RAF’s efforts to resolve its financial challenges and implement reforms.
What’s Next: Proposed Reforms and Long-Term Goals
The Major Overhaul Ahead at RAF isn’t just about settling overdue claims. The interim board is also focused on long-term reforms to improve the RAF’s financial health and operational efficiency. One of the key reforms is the proposed Road Accident Benefit Scheme Bill, which aims to replace the current fault-based system with a no-fault system. This would make it easier for victims to receive compensation quickly, without the need for lengthy legal battles.
A no-fault system would reduce legal costs and streamline the compensation process, making it more accessible to all South Africans. It would also help stabilise the RAF financially by minimising disputes and speeding up payouts. This proposed reform is a key part of the Major Overhaul Ahead at RAF and could have a significant positive impact on the fund’s future.
For these reforms to succeed, the interim board must continue working swiftly to address ongoing legal and financial issues while securing the necessary resources to implement the changes effectively.
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Moving Forward: A Fresh Start for the RAF
The major overhaul ahead at RAF is a critical step forward. The decision to pay out R19 billion in overdue claims is essential for restoring public confidence in the fund. However, the RAF’s long-term stability will depend on the interim board’s ability to manage its financial issues and implement lasting reforms.
The proposed Road Accident Benefit Scheme Bill represents a promising step toward improving the RAF’s efficiency. But the success of this reform will depend on how effectively the interim board handles the fund’s current challenges and ensures that the system works for the benefit of all road accident victims.
For continuous updates on the RAF’s progress, visit the official RAF website.
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