Transport Minister Barbara Creecy has officially dissolved the board of the Road Accident Fund (RAF), citing a series of severe governance and operational failures that have jeopardised the fund’s stability and public mandate.
Source: Road Accident Fund/Facebook
The move, announced on Tuesday, 15 July 2025, follows increasing pressure from parliamentary bodies, including the Standing Committee on Public Accounts (Scopa) and criticism from political parties such as ActionSA. The dissolved board has been under scrutiny for financial mismanagement, institutional paralysis, and infighting that hindered effective leadership.
Among the key issues highlighted were the board’s costly and prolonged legal dispute over accounting standards, which drained resources, and its controversial suspension of chief executive officer Collins Letsoalo—a decision Minister Creecy described as “reckless.” The fallout led to a breakdown in leadership and a rise in default judgments, inflating the RAF’s liabilities and threatening its solvency.
Creecy also noted the board’s failure to fill essential leadership positions, including the Chief Claims Officer and Head of Legal, as well as an overreliance on casting votes rather than consensus-based decisions—an indication of deep divisions within the board.
Reform and oversight
To prevent a governance vacuum, Creecy has approached the Minister of Finance to appoint an interim accounting authority under the Public Finance Management Act. Simultaneously, the recruitment process for a new board is underway, with a merit-based appointment system and a governance overhaul planned.
An expert advisory committee will be established to conduct a full operational review and recommend a sustainable governance model. The Special Investigating Unit (SIU) has also been asked to evaluate whether its existing investigation into the RAF should be expanded to cover recent events.
Looking ahead, Creecy reaffirmed her department’s commitment to legislative reforms through the Road Accident Benefit Scheme (RABS) Bill, which aims to simplify the claims process and establish a more equitable, no-fault benefit system for road accident victims.
The dissolution marks a significant step towards restoring public trust in the RAF and ensuring the fund can deliver on its mandate to support road accident victims fairly, efficiently, and sustainably.
