Transport Minister Barbara Creecy has officially dissolved the Board of Directors of the Road Accident Fund (RAF), citing severe governance failures and operational paralysis that have crippled the entity’s ability to fulfil its legal mandate.
“This decision was not taken lightly,” said Collen Msibi, National Spokesperson for the Department of Transport. “The RAF has been in deep crisis, and Minister Creecy has acted decisively to protect public interest and ensure that road accident victims are not further disadvantaged by poor leadership.”
Key reasons behind the dissolution include costly and prolonged litigation over accounting standards that drained the RAF’s resources, the mishandling of the CEO’s suspension, which led to legal battles and instability, the frequent issuing of default judgments, worsening the fund’s financial position, and deep divisions within the Board, where decisions were often made by casting vote rather than consensus. In addition, the Board failed to appoint two critical executives of the Chief Claims Officer and Head of Legal, essential roles for the Fund’s operations.
“These issues resulted in the loss of confidence in the board’s ability to run the entity effectively,” Msibi added.
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The Minister had issued a notice of intention to dissolve the Board on 5 June 2025, affording all eleven members an opportunity to respond. After reviewing their representations, the dissolution was confirmed.
To prevent a governance vacuum, Creecy has taken several urgent and strategic steps. She has submitted a request to the National Treasury for the appointment of an interim Accounting Authority in terms of Section 49(3) of the Public Finance Management Act (PFMA) to ensure continuity and oversight.
In addition, a public call for nominations has been prepared to recruit a new, capable board through a transparent and merit-based process. An Expert Advisory Panel is also being established to thoroughly review the RAF’s business and governance processes, with a mandate to provide actionable recommendations.
The Department has further asked the Special Investigating Unit (SIU) to confirm whether the events of the past three months are covered by its current investigation under Proclamation 44 of 2024. If not, Creecy has formally requested the scope of the investigation be extended.
The Minister also reaffirmed her department’s commitment to fast-tracking the Road Accident Benefit Scheme (RABS) Bill, which aims to introduce a no-fault compensation system to reduce the legal costs and delays currently faced by victims.
“The RAF must work for the people, especially the victims of road accidents. This intervention marks a reset, and we’re determined to restore its credibility,” said Msibi.
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