The Department of Transport has pledged to “decisively deal” with the long-standing challenges facing the Road Accident Fund (RAF) as it prepares to reintroduce the Road Accident Benefit Scheme (RABS).
During a mini-plenary debate in the National Assembly yesterday, Deputy Minister Mkhuleko Hlengwa (pictured) said Minister Barbara Creecy has delegated several key responsibilities to him to ensure more focused and streamlined oversight in the department.
Addressing the state of the RAF, Hlengwa said efforts are under way to restore the Fund’s financial health and ensure fair, timely compensation for road accident victims.
He acknowledged that the RAF remains a critical mechanism for supporting individuals injured in road accidents but said the Fund has been plagued by serious operational and financial problems. These include rising liabilities, inefficiencies across the system, and significant delays in processing claims.
“These issues have eroded public confidence and placed undue strain on accident victims awaiting relief,” he said.
Hlengwa emphasised the department’s determination to fix the Fund through the upcoming RABS.
“We are, as the ministry, working towards the stabilisation of the RAF but further, we are going to decisively deal with the challenges as we bring about the Road Accident Benefit Scheme, which, amongst others, would ensure a no fault compensation system; defined benefits; faster, direct payments; structured, long-term benefits paid in annuities instead of lump sums; ensure the exclusion of foreign nationals, illegally ones as well; and also a medical base claims processing system and an integrated data claim system.
“So, we are en route to ensuring that the RAF is fit for purpose and is able to respond to its mandate,” he said.
Back from the dead
Moonstone previously reported that after months of uncertainty, the controversial Road Accident Fund (RAF) Amendment Bill has been quietly abandoned – and the long-rejected RABS Bill is back on the legislative agenda. Hlengwa broke the news to Parliament’s Portfolio Committee on Transport during a briefing on developments at the RAF held on 3 June.
Read: Government revives rejected Bill to fix Road Accident Fund
The now-scrapped RAF Amendment Bill, released in 2023, proposed replacing the current compensation model with a social benefits system and cutting legal professionals from the claims process – a move critics said would severely disadvantage victims.
Public backlash was swift, with more than 19 000 submissions opposing the Bill. Despite assurances from the RAF and Cabinet earlier this year that amendments were still under way, the plan has now been dropped.
But the alternative – the RABS Bill – is equally controversial.
First introduced in 2017, RABS proposed a no-fault scheme with defined, capped benefits, and no option to sue negligent drivers. Critics warned it would strip victims of their right to claim for pain and suffering, and deny compensation to minors, the elderly, and non-citizens.
The Bill also proposed income caps and excluded many informal workers, such as taxi drivers and street traders, from meaningful compensation. Projections indicated the scheme could cost the state significantly more, possibly requiring large fuel levy increases.
After widespread opposition, the National Assembly rejected the RABS Bill in 2020. Its reintroduction now signals a renewed push by the ministry to overhaul the RAF, despite the Bill’s many unresolved concerns.
Letsoalo loses court bid to halt RAF suspension
Hlengwa’s update on the revival of the RABS came just days after suspended RAF chief executive Collins Letsoalo lost his urgent court application to overturn his suspension and stop the recruitment process for his successor.
Letsoalo approached the High Court in Pretoria last week, arguing the RAF board had already agreed to renew his contract, which ends on 6 August. He sought to block the advertising of the CEO post but failed to provide evidence of a binding decision. The court dismissed his application, ruling he had no legal grounds for an urgent interdict.
Letsoalo’s suspension followed board meetings on 30 May and 2 June. According to board deputy chairperson Nomonde Mabuya-Moloele, the meetings were prompted by the RAF’s appearance before Parliament’s Standing Committee on Public Accounts (SCOPA). Letsoalo was accused of insubordination for failing to attend the 28 May SCOPA session and was initially placed on special leave.
Letsoalo claimed the board had already resolved to renew his contract, but board chair Zanele Francois denied this, saying no such decision was made, nor did the board have the authority.
In court, RAF legal counsel Advocate Ernst van Graan said Letsoalo had not presented any valid reason to halt the recruitment process. Letsoalo’s lawyer, Advocate Hlalele Molotsi, argued that the board had misrepresented the reasons for his suspension and failed to follow proper disciplinary procedures.
Letsoalo accused Francois of misleading Parliament, the court, and Transport Minister Barbara Creecy. He cited a letter from RAF audit committee chair Lekau Nyama, which contradicted the board’s version of events, saying Letsoalo had been granted compassionate leave for personal reasons. He also submitted flight records showing he had travelled to Cape Town for the SCOPA meeting.
Despite these claims, the court found no factual or legal basis for an interdict and ordered Letsoalo to pay legal costs, including those for two counsel and the 17 June hearing, on a party-and-party basis.
With less than three months remaining in his term, Letsoalo remains on suspension with full pay and benefits.
