
SCOPA blames RAF’s litigation failures for billions in legal costs
The committee says delays in investigating and settling claims, combined with a chaotic approach to litigation, have driven much of the Fund’s escalating legal bill.

The committee says delays in investigating and settling claims, combined with a chaotic approach to litigation, have driven much of the Fund’s escalating legal bill.

An arrangement intended to cost R10m for 10 months ran for years, absorbed R26.6m in seven months, and included claims work outside its scope.

SCOPA says linking attorneys’ success fees to claim values may create incentives to inflate claims, while billions in legal costs flow through a small group of firms.

The revived RAF 1 Form claims could create billions of rands in additional liability, with the Fund’s first-quarter average payment illustrating the potential scale of the exposure.

The RAF has emerged from years of adverse audits with an unqualified opinion, while the government is reworking the Fund’s funding model as part of the revived RABS Bill.

From loss of earnings to plaintiff attorneys, the quarter’s figures offer a closer look at where the RAF’s money is going.

SCOPA’s draft report suggests the deeper the committee dug into the RAF, the more governance failures it uncovered.

Years of payment delays, missing invoices, and weak administration left medical experts unpaid, before the Fund sought to invoke prescription against some claims.

SCOPA votes to proceed with a criminal charge against former RAF CEO Collins Letsoalo, despite uncertainty over whether the summons he ignored was served correctly.

The government says work on reviving the RABS Bill is nearing completion, even as critics warn the reforms could worsen the RAF’s financial crisis.

The judgment criticises the Fund’s continued resistance to medical-expense claims already addressed in earlier Western Cape rulings.

A Court-ordered reset of the RAF claims process may force recognition of previously excluded liabilities, with potentially severe consequences for the Fund and the fiscus.

SCOPA says the RAF 1 form may have kept claims out of the system, leaving the Fund exposed to a wave of unrecognised liabilities if it is set aside.

Neither the RAF nor the Minister of Transport can limit who qualifies for compensation under the Act.

A comparative study of three compensation models finds that combining elements of each may provide a more balanced solution.

The Supreme Court of Appeal orders the Fund to settle R92 million in judgment debt to Newnet and comply with payment and adjudication requirements.

The High Court finds that seizing a vehicle’s controls can make a passenger the legal driver under the RAF Act.