Transport Minister Barbara Creecy takes decisive action against the Road Accident Fund board amid suspensions, financial woes, and systemic governance failures.
RAF Board Dismantled: In an attempt to restore public trust and operational efficiency at the embattled Road Accident Fund (RAF), Transport Minister Barbara Creecy has officially dissolved the RAF board. This action follows prolonged instability, mismanagement, and financial distress that have crippled the institution’s ability to fulfil its mandate to road accident victims.
A Troubled Fund in Turmoil
The dissolution, announced on Tuesday, 16 July 2025, comes as the RAF faces mounting criticism over internal strife, ballooning financial deficits, and poor governance. Creecy’s office cited “persistent governance and operational challenges” as the primary reasons behind the board’s dismissal.
This marks yet another chapter in the RAF’s spiralling crisis, following the recent suspension of its CEO, Collins Letsoalo and Chief Investment Officer, Sefotle Modiba. Letsoalo was suspended for alleged insubordination after failing to appear before Parliament’s Standing Committee on Public Accounts (Scopa), while Modiba’s suspension relates to unresolved issues from his previous role at the City of Johannesburg.
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Financial Mismanagement and Legal Battles
According to Creecy’s spokesperson, Collen Msibi, the board’s inability to effectively lead the RAF has severely compromised its financial and operational sustainability. He highlighted several damaging decisions, including:
- Protracted litigation costs: Legal battles over accounting standards have drained RAF’s already strained financial resources.
- Leadership void: The failure to appoint a Chief Claims Officer and a Head of Legal has left critical functions in limbo.
- Reckless suspensions: The poorly managed suspension of Letsoalo triggered a legal backlash, intensifying uncertainty within the fund.
- Mounting liabilities: A wave of default judgments has further increased RAF’s contingent liabilities, deepening its financial crisis.
These issues have collectively resulted in a loss of confidence in the board’s capacity to oversee RAF’s mandate.
A Way Forward: Reform and Restructuring
Minister Creecy has reaffirmed the Department of Transport’s commitment to restoring the RAF’s credibility. She emphasised that necessary steps will be taken to stabilise the institution and accelerate reforms, including the long-anticipated Road Accident Benefit Scheme (RABS) Bill.
The Bill proposes a no-fault system, allowing road accident victims to access compensation directly, without resorting to protracted legal processes. If passed, this legislative overhaul could dramatically reduce legal fees and delays, ensuring more equitable access to justice for victims.
The dissolution of the RAF board is a clear signal from the Department of Transport: governance failures and inefficiency will no longer be tolerated. As South Africans wait to see whether Creecy’s intervention will yield real change, many remain hopeful that long-overdue reforms will bring relief to road accident victims who’ve suffered due to the RAF’s dysfunction.
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