In a bold move that underscores the government’s commitment to reform, Transport Minister Barbara Creecy has dissolved the Board of the Road Accident Fund (RAF). This pivotal intervention comes in response to persistent governance and operational challenges that have significantly hindered the RAF’s capacity to effectively support road accident victims across South Africa.
The decision follows months of turmoil that have eroded public confidence in the RAF’s leadership and financial management. Creecy’s resolution is rooted in a comprehensive review, revealing troubling systemic failures within the entity’s governance structures. Among the most alarming issues was the Board’s engagement in protracted litigation over accounting standards, which not only strained the RAF’s already limited financial resources but also diverted its focus from its core mission.
“The current situation is untenable and fails both the public and road accident victims who depend on this critical institution,” said Minister Creecy. “Our immediate priority is to stabilise the organisation, but we are equally focused on implementing long-term solutions that will prevent such systemic failures from recurring.”
The RAF has faced a host of challenges, including the inconsistent handling of its Chief Executive Officer’s suspension, which was executed in a manner that created institutional uncertainty and sparked further legal scrutiny. In addition, increasing default judgments against the RAF have pushed its financial sustainability to the brink, augmenting its contingent liabilities.
Internal disruptions within the Board have further compounded the organisation’s difficulties. Key decisions were often made through voting rather than consensus, highlighting deep divisions among Board members and signalling a troubling lack of cohesion in critical decision-making processes. This dysfunction was exacerbated by unfilled executive positions, notably the Chief Claims Officer and Head of Legal, resulting in significant leadership voids.
In light of these pressing challenges, Minister Creecy initiated a formal dissolution process on June 5, 2025, notifying all eleven Board members of her intentions and inviting their representations. After careful consideration, she concluded that dismantling the Board was essential for restoring accountability and stability.
To ensure continuity during this transitional phase, Creecy has requested the National Treasury to appoint an interim Accounting Authority, preventively mitigating any governance vacuum as a new Board is established. The formation of this new Board will proceed through a transparent, merit-based recruitment process that is soon to be publicly announced.
Acknowledging the necessity for comprehensive reforms, the Minister has also initiated the establishment of an independent Expert Advisory Committee. This panel, composed of specialists, will undertake a thorough review of the RAF’s business processes and governance model to craft actionable recommendations for sustainable improvement. The composition of this committee will be revealed in the coming weeks.
Additionally, the Minister has sought clarification from the Special Investigating Unit (SIU) on whether its existing investigation into the RAF covers recent developments and indicated that should it be necessary, an expansion of the scope will be requested to ensure thorough scrutiny of all potential irregularities.
The drive towards reform is further highlighted by the ongoing progress of the Road Accident Benefit Scheme Bill, which proposes a shift to a no-fault compensation system aimed at simplifying access to benefits for accident victims while curtailing the costly legal battles historically associated with RAF claims.
As the dissolution takes effect, the Minister’s ability to implement corrective measures swiftly will be crucial in restoring public trust in an institution pivotal to South Africa’s transport framework. Stakeholders have been assured that services to road accident victims will continue unabated during this transition, with additional safeguards instituted to maintain operations while new leadership structures are established.
This sweeping intervention marks one of the most significant governance overhauls in the RAF’s recent history, showcasing the government’s determination to tackle the systemic challenges faced by state-owned entities. The forthcoming months will not only be critical for the RAF but will serve as a test case in South Africa’s approach to complex institutional reforms across its public sector.