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The Road Accident Fund (RAF) has told the standing committee on public accounts (Scopa) that its operational difficulties stem from structural insolvency and decades-old backlogs that it cannot clear under current arrangements.
Acting chief claims officer Tshepo Moatshe said claims must be finalised within five years or they expire, and the RAF attempts to contact claimants or their legal representatives before closing files but cannot guarantee reaching everyone.
Acting strategy and transformation officer Rodney Mkhabela described a targeted backlog campaign that has processed claims dating back to 2014, recorded 1,698 inbound inquiries with a 97% settlement outcome from that intake, and reached more than 65,000 claimants through an outbound documentation drive. The RAF has expanded contact centre capacity to 300 staff and told MPs it has recorded roughly 1-million customer interactions since 2023.
RAF officials confirmed the fund is now insolvent and said the interim board plans to allocate R4bn a month to reduce the backlog.
The fund attributed the delayed lodging of its annual report to audit impediments, with documents to be submitted by this week.
MPs raised operational accountability issues. EFF MP Veronica Mente reported unopened posted claims and boxes of correspondence in RAF offices, and MK party MP Khayelihle Madlala queried the authorisation for contacting claimants whose matters may be prescribed. The RAF said it uses tracing agents to locate claimants and treats every recorded claim as a liability irrespective of age or prescription status.
The department of transport told the committee the Road Accident Benefit Scheme Bill is being finalised for cabinet consideration, and the proposed scheme would move to a no‑fault model with capped loss of earnings and reduced reliance on the fuel levy. The department confirmed it will continue to co‑operate with parliamentary oversight as legislative reform proceeds.
Treasury’s returns for 2022-25 record RAF‑related deviations totalling R1.412bn and contract variations of R719m. Its 2024/25 returns show R811.4m in deviations and R266.9m in variations for that year alone.
Treasury identified large single‑source and variation items, including a R307.3m contact centre deviation, substantial property lease variations, a Microsoft enterprise agreement renewal and material payments to major ICT and service suppliers. It reminded the committee of statutory reporting thresholds and monthly reporting requirements for material contract expansions and deviations.
Scopa signalled it will press for original deviation approvals, variation justifications, monthly Treasury reports and bank‑level payment trails to trace beneficiaries and determine compliance with Public Finance Management Act rules and Treasury instructions.
The auditor-general’s presentation to the committee reinforced the RAF’s structural insolvency and governance failures. It reported an accumulated deficit of R27.8bn. The auditor-general flagged incomplete disclosure of irregular expenditure, with a closing balance of R459m. It also identified control weaknesses, including diverted payments totalling R36.5m and overpayments of R6.4m.
The auditor-general warned that capacity gaps, prolonged suspensions, legal resourcing shortfalls and supply chain transgressions severely impaired the RAF’s ability to clear decades‑old backlogs.
It recommended urgent consequence management, restoration of proper accounting standards and intensified parliamentary oversight.
Update: October 8 2025
This story has new information.
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