Troubled RAF executives give themselves big performance bonuses

Executives of the embattled Road Accident Fund (RAF) gave themselves R6.74 million worth of performance bonuses in the 2024/25 financial year – with the controversial former CEO getting a comfortable R2.8 million bonus.

This comes while the RAF, South Africa’s government insurer funded by a R2.18-per-liter fuel levy, is in severe financial and governance crisis.

It collects over R48 billion annually from the fuel levy but faces insolvency amid corruption claims and mismanagement.

At the end of the 2024/25 financial year, the RAF had R10.4 billion in unpaid claims and a total claims liability of R40.4 billion, yet relies on monthly fuel levy revenue of about R4 billion, making the fund technically bankrupt.

Allegations of hidden funds, manipulated accounting, and asset shielding have deepened mistrust.

In July 2025, Transport Minister Barbara Creecy dissolved the RAF Board due to persistent dysfunction.

An interim board was appointed in August, following the suspension of CEO Collins Letsoalo for insubordination.

The RAF has faced adverse or disclaimed audit opinions for the past five years, and is running a R27.8 million deficit, which has grown over a decade.

Despite this, the total remuneration paid to executive management at the RAF for the 2024/25 financial year amounted to R32,552,000, marking an increase from the R29,956,000 reported in the previous financial year.

ActionSA MP and Standing Committee on Public Accounts (SCOPA) member Alan Beesley told Newsday that “the excessive performance bonuses paid to the executives of the RAF is morally wrong and shocking.”

“The RAF is bankrupt and key performance indicators have gone backwards. One must ask how the executives can receive a performance bonus when victims of accidents are receiving very little or nothing at all.”

“These bonuses speaks to an organisation that has lost its moral compass and has become a feeding scheme for a few. It is so wrong on so many levels,” added Beesley.

Parliament’s probe

Parliament’s SCOPA launched an inquiry into the RAF’s “toxic leadership” and possible criminal misconduct, receiving over 100 submissions from lawyers, doctors, staff, and victims. Allegations include:

• Poor vetting of senior executives with reckless financial histories
• Average claims processing delays of four years
• Financial mismanagement and undisclosed liabilities of R500 billion
• Excessive spending on personal security: former CEO Collins Letsoalo reportedly spent R23 million (2023–2025), including R10 million on hotel stays and bodyguards

Former RAF Chief Actuary Itayi Charakupa said there is “no logical reason” for underreporting liabilities, stressing the importance of accurate financial disclosure for public entities.

In early November, the RAF board placed the Acting CEO, CFO, Chief Governance Officer, and Head of the CEO’s Office on precautionary suspension to allow an independent investigation into administrative and governance failures.

The inquiry has exposed extreme dysfunction: MPs have been unable to locate Letsoalo, who is wanted to explain his role in governance failures.

SCOPA chair Songezo Zibi reported that attempts to serve him a subpoena failed; the addresses he previously used were abandoned.

If he does not appear, Parliament may lay criminal charges for defying a summons.

Zibi highlighted alarming governance lapses, including a major accounting policy change affecting 500,000 claimants implemented without board approval.

Nearly R1 billion in procurement was outsourced to two external companies without proper oversight.

“Dysfunction is the best way to put it,” said Zibi.