The Road Accident Fund (RAF) has been technically insolvent since 1981, with liabilities consistently exceeding assets and ordinary South Africans bearing the brunt of the crisis, former board members told parliament’s standing committee on public accounts (Scopa) this week. Former RAF board members Nomonde Buyisiwe Mabuya, Thembelihle Nkosazana Msibi and Zanele Lorraine Francois said the fund’s structural and governance failures have translated directly into hardship for claimants, hospitals and families. They cited ministerial reports and budget statements showing that by 2022/23 the RAF’s liabilities were forecast to exceed R600bn, while the average turnaround time to settle a claim was more than five years.
The former board members pointed to the late finance minister Tito Mboweni’s 2020 budget speech, in which he warned that despite a 9c increase in the RAF fuel levy, liabilities would still surpass R600bn, posing a major risk to the fiscus. They said fiscal strain has meant thousands of accident victims wait years for compensation, while service providers such as hospitals face closure due to unpaid bills. The board members stressed that these systemic failures have real‑world consequences: families unable to cover medical costs, hospitals issuing thousands of summonses to recover unpaid bills, and accident victims left without income support.
Sunshine Hospital, they noted, was forced to close after the RAF failed to pay R300m in claims, leaving patients and staff stranded. They added that between 2020 and 2025, the RAF paid out more than R215bn in social benefits, yet it continued to operate under severe strain. They said default judgments accounted for 3%-5% of total liabilities, a figure confirmed by the auditor‑general, and that 182 staff suspensions were recorded between 2020 and 2024 as part of fraud‑related disciplinary processes.
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They also raised concerns about their relationship with the present political leadership. Since transport minister Barbara Creecy’s appointment in July 2024, they said, the board has not been engaged on expectations or strategic direction. Their first interaction was a “hostile” AGM in September 2024, where deputy minister Mkhuleko Hlengwa allegedly instructed the board to withdraw litigation against the auditor‑general, contrary to section 15 of the RAF Act.
Despite these constraints, the former board members argued that they had strengthened governance structures during their tenure, improved oversight and achieved 23 out of 27 annual performance plan targets by March 2025. They warned that without legislative reform and sustainable funding, ordinary South Africans continue to face lengthy delays, unpaid claims and collapsing health services.
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