- Key Failures That Led to the Board’s Dissolution
- Ministerial Interventions to Restore Stability
- 1. Board Dissolution Process
- 2. Request for Interim Accounting Authority
- 3. Recruitment for New Board
- 4. Formation of Expert Advisory Panel
- 5. SIU Investigation Scope Expansion
- Looking Ahead: RAF Reform and the New Benefit Scheme
- Conclusion: Resetting the RAF
Minister of Transport Barbara Creecy has officially dissolved the Board of Directors of the Road Accident Fund (RAF) with immediate effect, citing serious and persistent governance failures that have crippled the entity’s ability to meet its statutory obligations.
The decision follows months of internal instability, executive-level vacancies, financial mismanagement, and protracted legal disputes that have further weakened the RAF’s financial sustainability and dented public confidence.
Key Failures That Led to the Board’s Dissolution
Minister Creecy cited several major concerns identified through internal audits and regulatory oversight engagements:
- Prolonged and costly litigation over the application of accounting standards, which depleted RAF’s financial resources.
- Mismanagement of the CEO suspension, which led to a legal challenge and institutional confusion.
- Frequent default judgments against RAF, increasing contingent liabilities and eroding the Fund’s solvency.
- Severe board divisions, with most decisions passed by casting votes rather than consensus.
- Failure to appoint key executives, including a Chief Claims Officer and Head of Legal, both critical for the Fund’s functioning.
“These issues reflect a lack of effective oversight and cohesion, which has undermined the RAF’s ability to serve the public,” said Minister Creecy.
Ministerial Interventions to Restore Stability
To prevent a governance vacuum and support continuity, Minister Creecy has enacted several immediate measures:
1. Board Dissolution Process
On 5 June 2025, a notice of intention to dissolve the board was issued to all 11 board members, giving them the opportunity to respond. After reviewing all representations, the board was formally dissolved.
2. Request for Interim Accounting Authority
A submission has been sent to the Minister of Finance, requesting an interim functionary be appointed as Accounting Authority in line with Section 49(3) of the Public Finance Management Act (PFMA).
3. Recruitment for New Board
A public advertisement for new board members is in preparation, with emphasis on transparency, merit, and compliance with legislation.
4. Formation of Expert Advisory Panel
An independent panel of governance and operational experts will be appointed to assess RAF’s current business processes and recommend a turnaround strategy. Panel members will be announced soon.
5. SIU Investigation Scope Expansion
Minister Creecy has written to the Special Investigating Unit (SIU) to determine whether current investigations under Proclamation 44 of 2024 cover the last three months. If not, a formal request will be made to expand the scope.
Looking Ahead: RAF Reform and the New Benefit Scheme
Minister Creecy reaffirmed her department’s commitment to restoring trust and efficiency within the RAF. She also emphasized progress on the long-awaited Road Accident Benefit Scheme (RABS) Bill, which aims to:
- Introduce a no-fault system
- Simplify and expedite claims
- Minimize costly legal battles for road accident victims
“We are committed to ensuring that the RAF is rebuilt on principles of transparency, accountability, and compassion for victims,” Creecy stated.
Conclusion: Resetting the RAF
The dissolution of the RAF Board marks a pivotal moment for one of South Africa’s most scrutinized public entities. With new leadership and a reformed structure on the horizon, Minister Creecy aims to reset the institution’s purpose—providing swift, fair, and equitable compensation to road accident victims without legal or bureaucratic hurdles.
