Transport Minister Barbara Creecy has dissolved the Board of the Road Accident Fund (RAF), citing its inability to effectively fulfil its mandate to support road accident victims.
The dissolution comes after RAF crashed into a series of critical challenges that have undermined its financial stability and operational capacity.
“The RAF has been grappling with significant governance issues that have eroded public confidence and hindered its ability to serve road accident victims,” Creecy said in a statement.
Restoration of stability
“We cannot allow these challenges to persist. And immediate action was necessary to restore stability.”
The decision comes after months of mounting concerns. These include costly litigation over accounting standards and mishandling of CEO Collins Letsoalo’s suspension. Also frequent default judgments, internal board divisions, and failure to fill key executive positions such as chief claims officer and head of legal.
These issues, confirmed through internal oversight and regulatory engagements, have led to a loss of confidence in the board’s leadership.
On June 5 2025, Creecy issued letters to the 11 RAF board members. She was notifying them of her intent to dissolve the board and inviting representations.
After reviewing their responses, she proceeded with the dissolution. To ensure continuity, Creecy has requested the National Treasury appoint an interim accounting authority under the Public Finance Management Act. This while a new board is constituted through a transparent, merit-based recruitment process.
Expert Advisory Committee
To address systemic issues, the minister has also established an Expert Advisory Committee. It will review RAF’s operations and propose sustainable reforms.
“This panel will play a crucial role in rebuilding the RAF into a reliable institution. And one that delivers for victims,” Creecy added.
The committee’s members will be announced soon.
Creecy has also approached the Special Investigating Unit (SIU) to determine if its ongoing investigation under Proclamation 44 of 2024 includes recent RAF events. If not, she has requested an expansion of the probe’s scope.
“We are committed to rooting out any misconduct and ensuring accountability,” she affirmed.
Road Accident Benefit Scheme Bill
The minister reiterated her department’s dedication to stabilising the RAF and advancing the Road Accident Benefit Scheme Bill, which aims to introduce a no-fault system to streamline benefits access and reduce legal costs for victims.
“Our priority is to ensure that road accident victims receive the support they deserve without delay or unnecessary hurdles,” Creecy said.
