The Road Accident Fund’s financial and operational collapse did not happen in the dark. Its own officials had flagged the warning signs years ago – falling productivity, ballooning payouts, and a growing backlog of unfinalised claims – only for their concerns to be brushed aside as “negativity” by the Fund’s leadership.
This emerged during recent testimony before Parliament’s Standing Committee on Public Accounts (SCOPA), where former chief financial officer Victor Songelwa (pictured) detailed how RAF management ignored internal alerts after the controversial 2020 decision to dissolve the Fund’s panel of attorneys.
The hearing forms part of an ongoing oversight inquiry into the RAF’s governance, finances, and litigation handling, following years of default judgments, missed court appearances, and spiralling liabilities.
A decision that backfired
When former RAF chief executive Collins Letsoalo announced in March 2020 that the Fund would terminate its panel of attorneys, the move was presented as a cost-cutting measure. The panel – a network of more than 100 private law firms handling the RAF’s court disputes – had been accused of inflating legal costs and slowing settlements.
However, as the Special Investigating Unit (SIU) later told Parliament, the cancellation was carried out “without a contingency plan” and “at a time when the Fund was not ready to take over the litigation process”.
The consequences were immediate and severe. The Office of the State Attorney, which was meant to take over, did not have the manpower to handle the flood of court cases. The panel system had relied on about 500 practising attorneys – roughly five per firm – whereas the State Attorney’s Office could assign fewer than 20 lawyers to RAF cases nationally.
As a result, thousands of matters went unattended, and judges began issuing default judgments against the Fund – many of them worth millions of rands.
By 2025, the situation had become so critical that SCOPA chairperson Songezo Zibi cited a High Court finding that RAF-related cases made up 56% of the court’s backlog, warning that new matters might only be heard in 2029 or 2030.
Read: ‘A train wreck’: SCOPA chair tears into RAF board over vacancies and fiscal chaos
In one example he gave, the RAF attempted to rescind a R6-million default judgment but sent an attorney “who told the judge she wasn’t there to argue, just observe”. “In the week of 5 May, the judge gave default judgments to the tune of R25m,” Zibi said. “Does that sound like an environment where these default claims are under control to you?”
The then RAF board chairperson, Lorraine Francois, conceded: “Definitely not.”
She told SCOPA the board had been assured that using the State Attorney’s Office would be more cost-effective.
“We were given the impression that these people are briefed appropriately and have the experience to deal with the matter,” she said. “We were not given the sense that these are not even able to present the RAF appropriately.”
In July this year, Transport Minister Barbara Creecy dissolved the RAF board, citing governance failures, persistent inefficiencies, and the suspension of the CEO.
Warnings from within
According to Songelwa, the full extent of the RAF’s operational decline had been well known inside the organisation, with an internally prepared annexure detailing the decline presented to management – but management failed to act.
“The numbers were there,” he told MPs. “From a finance perspective, this is now us looking at the numbers and saying: was something done to correct this? We can see that nothing was done, or whatever was done did not work to address the problem.”
Claims collapse
The RAF’s 2023/24 annual report shows that the number of claims registered fell from 303 695 in 2019/20 to 79 377 in 2024 – a decline of almost 74%. Personal claims, representing injured road users, dropped even more sharply, from 102 086 in 2020 to 18 286 in 2024 – down 82%.
“In 2020, the RAF was registering 1 963 claims each week,” Songelwa said. “But in 2024, it was registering only 351 per week.”
The number of claims finalised mirrored this collapse. In 2020, the RAF concluded 80 370 personal claims. By 2024, that figure had plummeted to 26 808, with roughly 1 000 fewer claims finalised per week compared with four years earlier.
“These figures illustrate the extent of the RAF’s productivity collapse since 2020,” Songelwa said, linking it directly to “the dissolution of the panel of attorneys and the operational disruptions that followed”.
Productivity unravels
Songelwa identified several causes for the sharp drop in output. Chief among them was the new centralised operating model introduced in 2020/21, which replaced the attorney panel with the State Attorney’s Office.
Under the new operating model, the number of claims settled per year decreased by more than 58%, he said.
The shift created a severe bottleneck in the claims assessment process.
“The attorneys from the State Attorney’s Office could not handle the workload and the volume of claims,” Songelwa said.
He described how the termination of the private panel had removed a vital layer of expertise. “Upon finalisation of a matter, the attorneys would also instruct cost consultants to settle party-and-party views of cost or attend the taxation thereof, thereby representing the interest of the RAF. But with the termination of the panel and the immediate demand for claim files to be returned, the benefits of proper evidence presentation in court were abandoned.”
The RAF was effectively left without representation for a long period.
“The vast majority of trial matters enrolled from June 2020 were finalised in court without any legal representation on behalf of the RAF,” he said, adding that “less than 20 attorneys during the 2021 financial year were available to try and fill the capacity void created by the termination”.
Staff suspensions worsened the situation.
“During the 2021 and 2022 financial years, more than 200 claim officers were suspended with the intention to dismiss them,” Songelwa told the committee. “Most of them were not replaced, which worsened the capacity challenges.”
Each remaining claims officer was handling an average of 2 000 files.
To make matters worse, the RAF introduced a new RAF 1 form in 2021, intended to simplify and standardise the claims process by consolidating several existing documents into one. In practice, however, it caused delays because many claimants and legal representatives were unfamiliar with the format, and the Fund lacked clear internal systems for processing it. The form became yet another administrative bottleneck that slowed registrations and finalisations even further.
At the same time, the discontinuation of the direct claims department, which had previously allowed members of the public to submit claims without legal representation, compounded the slowdown, Songelwa explained.
The cost of inaction
While productivity collapsed, costs did not. The total amount paid out in claims rose steadily over the same period.
According to the RAF’s annual reports, total payouts were R44 billion in 2020, R35.5bn in 2021, R43.4bn in 2022, R46.4bn in 2023, and R45.6bn in 2024.
The average value per claim soared from R138 000 in 2020 to more than R235 000 by 2021, a 70% increase in a single year.
“Between 2018 and 2020, the average value per claim was in line with inflation,” Songelwa said. Then from 2020 to 2021, an astronomical increase.
He attributed this to inflated settlements and default judgments arising from the lack of legal representation.
“The combination of inflated claim settlements and default judgments led to this 70% increase in the cost of a single claim.”
Typically, he noted, management would analyse such a spike and implement corrective measures.
“But we can see that did not happen,” he said. “From a finance perspective, whatever was done did not work to address the problem. The underlying capacity challenges remained unresolved as at 31 March 2022.”
“Told we were being negative”
Songelwa said that the RAF’s financial and operational challenges were not unforeseeable – staff had raised the alarm internally. However, rather than prompting corrective action, these warnings were often dismissed by management.
“When these things, for example, the increases in the average claim cost. The reaction would be, you guys are negative. You’re giving us negative information,” he told SCOPA.
He said this dismissive attitude allowed inefficiencies to persist and deepen, even as the data showed clear signs of decline.
SCOPA continues RAF financial inquiry
SCOPA enters its fourth week of hearings into the RAF’s finances this week.
Tomorrow (28 October), Thomas Harban, general manager of the Legal Practitioners’ Indemnity Insurance Fund (LPIIF), will testify on the impact of prescribed RAF claims on the fund, which insures legal practitioners against professional liability. The backlog of more than 400 000 outstanding RAF claims has accelerated these prescription risks.
On Wednesday, 29 October, SCOPA will hear from Brett Phillips, senior manager for Litigation and Mediation at the RAF, and former RAF direct claims handler Christinah Mthethwa on the effectiveness of State Attorneys and the management of direct claims.
On Friday, 30 October, representatives from Morar Incorporated and PricewaterhouseCoopers will be addressing the RAF’s accounting policy decisions and whether the board met its fiduciary responsibilities amid repeated court rulings against the changes.
As far through preliminary evidence provided…it’s clear RAF board.. Executive both CEO and chairperson were delinquent….. therefore claimant can’t be hold in Ransom. National Treasury must advance the bailout to RAF as an immediate remedy then deduct Such from RAF monthly levy income…this will allow the RAF to adjust to new liability which will be less and manageable and reduce legal costs and interest on current finalised backlog payments…..Bailout… implement new interim model while awaiting the so called RABS which will yet take years not less than 10 years to finalize due to pending legal challenges it faces just as NHI….. Bailout
I CANNOT MANAGE BEING INJURED AND UNEMPLOYED FOR SIX YEARS PLEASE CONTACT MY ATTORNEY, BEING DISABLED NO BODY WILL EVEN LOOK AT YOU FOR A JOB
I AM TOO OLD AND NO ONE WILL HELP ME
I tried to warn the judicuary about the dangers of employing Mr Letsoalo bt we were ignored an were targeted to a point of revoking our licences. We are coming after this comission to demand the taxpayers money they cant be held responsible for this mess when some people were benefiting from this corruption.
Good afternoon
The internal memo was sent by the Raf Head office on the 12 th August 2022 and on the 27 th October 2022 was set aside by the High court in Pretoria .
On the 03 rd November 2022 I have submitted my invoices and request was made on the 04 th November 2022 by Jhb Raf office whereby an amount of R8 124.00 rolled into my account on the 20 th December 2022.
PMB’s (Prescribed Medical Benefits) which is defined by the Medical aid act and relevant only to the conduct of medical schemes in terms of how specific conditions are funded, it has no legal bearing whatsoever on the RAF.
I cannot be advised that the status quo remains whereas the instruction to stop processing the claims was set aside let alone declared unlawful.
All in all my invoices are 11 which is a total amount of R55 197.50 and I have no choice but to continue with the exercises and stretches as well as taking medication because of the condition I have caused by this accident, now I am paying for high plan option so that the physiotherapist, biokineticist and pain management doctors can be catered for and before the accident I was surviving by low plan option
The invoices incurred are as follows:
No. 00079255 dated 25 Aug 2022 submitted at Park town on the 28th Nov 2022
No. 00088963 dated 02 Mar 2023 submitted at Park town on the 09th Mar 2023
No. 00090902 dated 28 Mar 2023 submitted at Park town on the 13th Apr 2023
No. 00094645 dated 09 May 2023 submitted at Park town on the 23rd Jun 2023
No. 1015820813 dated 07 Sep 2023 submitted at Park town on the 11 Sep 2023
No. 5042 dated 24 Aug 2023 submitted at Park town on the 11 Sep 2023
No. 51195 dated 08 Sep 2023 submitted at Park town on the 11 Sep 2023
No. 507251 dated 26 Aug 2023 submitted at Park town on the 11 Sep 2023
No. 00016325 dated 04 Jan 2024 emailed to JHB invoice
No. 00113493 dated 28 May 2024
No. 00114700 date 25 Jun 2024
My raf link number is 3792186
Warm regards
Ramothibedi Mamabolo
011 481 0482
071 675 6029
073 092 3577
Glorious afternoon RAF management
Hereby is full name and surname
Lucky Jan Mathonsi, ID
7304095442082
I’m forwarding this complaint about my claim whereby I had an accident on the 15th of January 2015, my matter has been handled by maponya mapulane inc, but now is with Madima inc Attorneys,
I will like your intervention on this matter as I’m asking myself why so long for my claim to pay out hance I’ve submitted everything and went to specialist or I’m one of those backlog fls awaiting,
Since the accident I haven’t work anywhere and it has affected me and my family deeply as the result of this,
My numbers are as follows
0763470199
0680713710
Hi Good evening me and my Brother was in a car crash and our attorneys submitted a claim at RAF ,I don’t no for what reason I didn’t get payed out but my brother was payed out from RAF, but we was in the same crash and our claim was submitted on the same day,now I’m sitting with a miserable life loos my job and can’t get work any where cause of my injury and I can’t afford to go to a private doctor every week or month and government hospitals is only given me painkillers and must sit a full day there and wait to get help so now it’s start getting difficult in my house with this lack of income to support my family ….all I’m asking the RAF to looking in this matter please
Good morning
I would like to lodge a complaint regarding my road accident claim I have been waiting for long now, can you please intervene the details are as follows:
My ref number : 3792186
The person handling my case: Kholiso
Office :Marble Tower Jeppe Street Johannesburg
Tel no.011 223 0249
Email address :Khulisom@raf.co.za
My details are as follows:
Applicant : Ramothibedi Ephaphrus Mamabolo
Id number:740822 5333 085
Date of the accident :21 March 2015
Contact details: tel no.(011)481 0481/2
Cell no.073 092 3577
Cell no.071 675 6029
Email address .MamaboloR@saps.gov.za
I have received interim offer around October 2017 and I was told that I will be called by the specialist to assess me early this year in order to evaluate my final offer and what is worries me is that is now over three years but I was advised not to worry because the delay was not on my side even though I am loosing patient it has been long time since I am waiting.
I have made an application myself but now I started to regret as to why didn’t I utilize legal representative because I am not being taken serious and I don’t who can I complain to.
Kind regards
Ramothibedi Ephaphrus Mamabolo
I’m one of those claims handlers who was the victim of Lesoalo’s disastrous management. I felt like a lunatic was given a gun, shooting indiscriminately
If U guys can help me following up my matter on behalf of me I wil appreciate it alot
My ID number :7910255239082
Name : Verdino Liedeman
Cell :0785525296
Email : liedemanverdino8@gmil.com
I was involved in car accident in 2019 at Potchefstroom , born in 1986 January 08 unable to work for my own , poor memory ,struggling to have food to eat , clothes to Weare, nothing to do with my own .I’ve attended many doctors that were sent to me to attended but the claim is still not finalized by the RAF I’m still waiting again another from Raf to attend ( neurologist) according to Raf. It’s almost a year now waiting for this specialist .My life if tough I’m being assisted buy my sister to go to public hospital for my health conditions and she not working any more
I was involved in a motor vehicke accident in 6th november 2016, an attorney put in a claim 2017 and currently to date I’m still waiting for RAF to settle my claim. I’ve now also canceled all attorney representation and decided to represent myself and even this has been dragging on forever. Please help.
Everything the ANC torches turns to crap.
True story, find one true success
I was involved in MVA 2010 3336209
Was awarded 100 % merit
My letter of undertaking was issued and all my meds and medical expenses were paid until 2020.
Now my drugs don’t qualify – Serlife/Lerica/Exinef- physio ( had 2 neck ops)
Not even my sleeping meds are now covered anymore. How do you pay for it for 10 years and then decide to stop paying for medication.
Also – beside your invoice ( copy of scribing now required and proof of payment. These are legitimate medication prescribed by a specialist and was always paid.
Phoned the attorney that took 25 % of my settlement and was told they can’t do anything for me. What does a writ mean if you struggle with ongoing claims ?
It’s very said to hear victims complaining about their compensations , whereas there are staff members working for RAF who earns lucrative salaries for serving victims but the victims themselves are going to bed without food, yes that is our own government that doesn’t have love for it’s people who voted for them, they think they are qualified to be there not by vote
The problem we have as south Africans is us…we keep voting the ANC no matter how it fail us in totality with Corruption and BEeee everywhere …..change your vote..remove the AnC and try other political party …. complaining for 30 years will never assist us. Let’s start by local government next year…remove ANC they will somehow revert back to their senses……Vote wise