Technically insolvent state-owned company owes South Africans R21 billion
The Road Accident Fund (RAF) currently owes South Africans R21 billion in unpaid claims, Minister of Transport, Barbara Creecy, revealed.
The RAF is designed to support South Africa’s road users if they are injured or killed in a crash.
The fund relies on a fuel levy, which drivers pay every time they fill up. This levy currently sits at R1.98 per litre of petrol or diesel.
If a person is injured in a vehicle collision, as a driver, passenger, or pedestrian, the RAF is meant to assist with medical expenses.
The fund has faced repeated scrutiny for failing to pay out these claims and has been accused of financial misconduct and potential corruption.
Minister of Transport, Barbara Creecy, dissolved the fund’s board of directors in 2025, due to questions about their leadership.
She then appointed an interim board, which quickly suspended several executives as investigations into administrative and governance failures were underway.
The Special Investigating Unit (SIU) has previously revealed that the RAF colluded with criminal syndicates to pay out false claims.
The fund has also faced several accusations that it attempted to hide money to avoid paying claims and legal fees.
This comes at the cost of many South Africans who are forced to wait years for their claims to be paid.
The RAF has been technically insolvent for years, as its expenditure continues to outgrow its earnings.
In 2025, the fund recorded a deficit of R27.8 billion, up from R25.8 billion in the previous financial year.
The fund is currently dependent on fuel purchases as its only revenue source, while the fund is forced to pay out large claims, which add to its deficit.
The deficit raises questions about how the fund will be able to pay out new and historic claims.
R21 billion in unpaid claims
Creecy said there are currently over 37,000 claims which have been approved for payment by the fund but have not yet been paid out.
These 37,000 claims had a total value of roughly R21.7 billion owed to victims of collisions on South Africa’s roads.
The non-payment places pressure on hospitals and medical practitioners, who cannot collect the debts owed to them for often-expensive treatments and procedures.
Creecy provided reasons for these claims being unpaid, with the largest being a failure to meet compliance requirements.
Compliance requirements refer to claimants failing to provide correct information or not following the RAF’s procedures after an accident.
These requirements include making a claim within three years of the accident and providing accurate identification and police reports from the collision.
These unfollowed compliance requirements account for nearly R11 billion of the total R21.7 billion in unpaid claims.
Other reasons for claims not being paid included outstanding documentation and payment due dates awaiting verification.
A breakdown of the reasons for unpaid claims is shown in the table below.
| Reason for non-payment | Amount unpaid |
| Compliance requirements | R10 959 635 015 |
| Outstanding Documentation | R1 699 381 665 |
| Payable pending due date verifications | R9 101 273 055 |
| Total | R21 760 289 734 |
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