A timeline of turmoil: How RAF's board came to be dissolved
Image: File
Minister of Transport, Barbara Creecy, on Tuesday confirmed that she had decided to dissolve the Board of the embattled Road Accident Fund (RAF).
The state-owned entity responsible for compensating victims of road accidents has faced significant challenges over the years, including costly legal battles, internal conflicts, and prolonged vacancies in key leadership positions.
These problems are also said to have made it difficult for the fund to operate effectively, causing delays in claim processing and putting additional pressure on its financial resources.
Following the Minister's announcement on Tuesday, several political parties expressed strong support for the decision, describing it as a necessary and long-overdue step to address the deep-rooted challenges at the entity.
With uncertainty surrounding the RAF, IOL takes a closer look at the sequence of events that led to the dissolution of the Board at the state-owned entity.
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Key events leading to the dissolution of the RAF board
14 April 2025
In a media briefing, RAF CEO Collins Letsoalo denied all allegations related to a R79 million lease deal currently being investigated by the Special Investigating Unit (SIU).
He rejected claims that procurement rules were bypassed to award the lease for the RAF's Johannesburg offices and said the process followed proper procedures.
May 28, 2025
The RAF Board and senior officials presented themselves before Parliament's Standing Committee on Public Accounts (SCOPA), where they were met with rigorous questioning. Committee Chairperson Songezo Zibi highlighted that crucial positions, such as Head of Legal and Chief Claims Officer, had remained unfilled for more than two years.
The committee also expressed concerns regarding the costly legal battles that the entity was losing, as well as the growing backlog of unpaid claims.
June 3, 2025
Letsoalo was suspended by the Board, allegedly for failing to appear before SCOPA in breach of a statutory summons.
His absence from the hearing incited outrage among MPs and exacerbated the ongoing governance crisis. The suspension intensified internal tensions, with some board members reportedly divided over how to address the situation.
June 5, 2025
Creecy issued letters to the eleven members of the RAF Board, allowing them to make representations regarding her intention to dissolve the Board due to their failure to discharge their fiduciary duties effectively.
24 June 2025
SCOPA announced a full-scale parliamentary inquiry into the entity, citing ongoing allegations of financial mismanagement, wasteful spending, and governance failures.
The Committee also said its decision came after 'months of repeated attempts to obtain truthful, complete information from the RAF Board and executive management to little avail.'
June 27 2025
RAF responded to the upcoming SCOPA inquiry by pointing out improvements in its operations. It said claimant payments rose to 83% of costs in 2023/24, while administrative expenses dropped to 17%.
The fund acknowledged its long-term financial challenges but stressed ongoing efforts to improve governance, including dedicated ethics and forensic teams and a fraud hotline.
July 13 2025
Letsoalo and suspended Chief Investment Officer Sefotle Modiba accused the legal sector, including parts of the judiciary, of widespread corruption affecting the fund. They alleged that RAF had been exploited for financial gain by certain law firms and that this systemic corruption was deeply entrenched.
July 15 2025
Minister of Transport Barbara Creecy announced the dissolution of the board, citing persistent governance and operational challenges that undermined the fund's ability to fulfil its statutory mandate.
mthobisi.nozulela@iol.co.za
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The Department of Transport's move to revive the long-rejected Road Accident Benefit Scheme (RABS) Bill has sparked concerns, following Minister Barbara Creecy's announcement that she has dissolved the Road Accident Fund (RAF) Board due to ongoing governance and operational failures. Creecy, who recently took over the transport portfolio, said the dissolution was necessary to stabilise the RAF and restore its ability to fulfil its mandate. She also confirmed the department's intention to finalise the Road Accident Benefits Scheme (RABS) Bill, a move that various organisations say is both undemocratic and dangerous. The department explained that the RABS Bill seeks to replace the current fault-based compensation model with a no-fault system, removing the need for costly legal processes. Civil society organisations, legal experts, and advocacy groups, many of whom have fought against the bill for years, have condemned its reintroduction. Among them is the Association for the Protection of Road Accident Victims (APRAV), which warned that pushing the bill forward again is a direct affront to democracy. 'Parliament has rejected RABS three times already,' said APRAV Deputy Chairperson and spokesperson Ngoako Mohlaloga. 'The continued attempt to revive it is either deliberate ignorance or a strategic attempt to bypass the will of the people.' APRAV Chairperson Pieter de Bruyn said the bill was rejected not only by lawmakers but also by road accident victims, legal professionals, disability rights groups, and medical experts. 'RABS would have stripped victims of their right to legal recourse, capped compensation, and imposed rigid limitations,' he said. 'It was unworkable and unjust, and its continued reappearance shows this is about pushing a political agenda, not real reform.' APRAV also pointed out that it led a two-year national consultation process that resulted in a credible and workable alternative to RABS, one that would fix the RAF without violating constitutional rights or collapsing the public purse. Legal expert Kirstie Haslam, a personal injury attorney and partner at DSC Attorneys, told Independent Media that the RABS Bill fails to tackle the real problems at the RAF, namely, poor management, inefficiency, and lack of accountability. 'RABS replaces a broken system with another flawed one,' Haslam said. 'It doesn't fix the root causes of RAF's dysfunction, and worse, it strips victims of access to justice by capping payouts and removing the right to claim for general damages.' She also added that the bill's attempt to limit legal oversight raises serious constitutional concerns and could face court challenges if passed in its current form. Haslam further highlighted troubling trends in the RAF's finances, which, although improved, have come at a cost. The RAF's 2023/2024 annual report shows the deficit has dropped from R8.43 billion to R1.59 billion, but partly due to reduced medical and loss-of-earnings payouts. Despite the tightening of spending, courts continue to issue significant awards. She revealed a series of recent payouts, such as in April, when a woman received over R4.6 million following the death of her husband in a motorcycle accident. That same month, another claimant, Seronica Nathram, was awarded nearly R3.9 million for injuries sustained in a crash. Another case involving the Road Accident Fund that commanded attention involved 16-year-old Ashwell Bernard Jones, where the Western Cape High Court awarded Jones just under R4,979,832 for future loss of earnings. He was only eight years old when he sustained a serious brain injury after being hit by a vehicle while riding his bicycle in Lavender Hill in 2017. The court ordered the RAF to cover all legal costs, including expert fees, travel expenses, and the possible appointment of a curator to manage the funds. The RAF was given 180 days to make payment, or interest will begin to accrue. While many groups remain opposed to the revival of RABS, the Congress of South African Trade Unions (COSATU) has backed the minister, calling the RAF a 'disaster site' with liabilities exceeding R400 billion. 'The RAF has become dysfunctional and has failed working-class South Africans for too long,' COSATU said in a statement. 'It's time for bold reform.' Responding to questions, the RAF Head of Corporate Communications, McIntosh Polela, said the RABS Bill is being revisited to address longstanding issues in the current RAF Act. 'The RABS Bill aims to reduce litigation, cut high administrative costs, and accelerate claim finalisation,' the fund said. 'It is part of a broader strategy led by the Department of Transport to ease the pressure on the courts and better serve road accident victims.' [email protected] Saturday Star

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Various organisations have raised significant concerns regarding the proposed finalisation of the Road Accident Benefit Scheme (RABS) Bill, especially following a crucial move by the Minister of Transport, Ms. Barbara Creecy, who has dissolved the Board of Directors of the Road Accident Fund (RAF). Various organisations have raised significant concerns regarding the proposed finalisation of the Road Accident Benefit Scheme (RABS) Bill, especially following a crucial move by the Minister of Transport, Ms. Barbara Creecy, who has dissolved the Board of Directors of the Road Accident Fund (RAF). The Department of Transport's move to revive the long-rejected Road Accident Benefit Scheme (RABS) Bill has sparked concerns, following Minister Barbara Creecy's announcement that she has dissolved the Road Accident Fund (RAF) Board due to ongoing governance and operational failures. Creecy, who recently took over the transport portfolio, said the dissolution was necessary to stabilise the RAF and restore its ability to fulfil its mandate. She also confirmed the department's intention to finalise the Road Accident Benefits Scheme (RABS) Bill, a move that various organisations say is both undemocratic and dangerous. The department explained that the RABS Bill seeks to replace the current fault-based compensation model with a no-fault system, removing the need for costly legal processes. Civil society organisations, legal experts, and advocacy groups, many of whom have fought against the bill for years, have condemned its reintroduction. Among them is the Association for the Protection of Road Accident Victims (APRAV), which warned that pushing the bill forward again is a direct affront to democracy. 'Parliament has rejected RABS three times already,' said APRAV Deputy Chairperson and spokesperson Ngoako Mohlaloga. 'The continued attempt to revive it is either deliberate ignorance or a strategic attempt to bypass the will of the people.' APRAV Chairperson Pieter de Bruyn said the bill was rejected not only by lawmakers but also by road accident victims, legal professionals, disability rights groups, and medical experts. 'RABS would have stripped victims of their right to legal recourse, capped compensation, and imposed rigid limitations,' he said. 'It was unworkable and unjust, and its continued reappearance shows this is about pushing a political agenda, not real reform.' APRAV also pointed out that it led a two-year national consultation process that resulted in a credible and workable alternative to RABS, one that would fix the RAF without violating constitutional rights or collapsing the public purse. Legal expert Kirstie Haslam, a personal injury attorney and partner at DSC Attorneys, told Independent Media that the RABS Bill fails to tackle the real problems at the RAF, namely, poor management, inefficiency, and lack of accountability. 'RABS replaces a broken system with another flawed one,' Haslam said. 'It doesn't fix the root causes of RAF's dysfunction, and worse, it strips victims of access to justice by capping payouts and removing the right to claim for general damages.' She also added that the bill's attempt to limit legal oversight raises serious constitutional concerns and could face court challenges if passed in its current form. Haslam further highlighted troubling trends in the RAF's finances, which, although improved, have come at a cost. The RAF's 2023/2024 annual report shows the deficit has dropped from R8.43 billion to R1.59 billion, but partly due to reduced medical and loss-of-earnings payouts. Despite the tightening of spending, courts continue to issue significant awards. She revealed a series of recent payouts, such as in April, when a woman received over R4.6 million following the death of her husband in a motorcycle accident. That same month, another claimant, Seronica Nathram, was awarded nearly R3.9 million for injuries sustained in a crash. Another case involving the Road Accident Fund that commanded attention involved 16-year-old Ashwell Bernard Jones, where the Western Cape High Court awarded Jones just under R4,979,832 for future loss of earnings. He was only eight years old when he sustained a serious brain injury after being hit by a vehicle while riding his bicycle in Lavender Hill in 2017. The court ordered the RAF to cover all legal costs, including expert fees, travel expenses, and the possible appointment of a curator to manage the funds. The RAF was given 180 days to make payment, or interest will begin to accrue. While many groups remain opposed to the revival of RABS, the Congress of South African Trade Unions (COSATU) has backed the minister, calling the RAF a 'disaster site' with liabilities exceeding R400 billion. 'The RAF has become dysfunctional and has failed working-class South Africans for too long,' COSATU said in a statement. 'It's time for bold reform.' Responding to questions, the RAF Head of Corporate Communications, McIntosh Polela, said the RABS Bill is being revisited to address longstanding issues in the current RAF Act. 'The RABS Bill aims to reduce litigation, cut high administrative costs, and accelerate claim finalisation,' the fund said. 'It is part of a broader strategy led by the Department of Transport to ease the pressure on the courts and better serve road accident victims.' Saturday Star