A timeline of turmoil: How RAF’s board came to be dissolved
Minister of Transport, Barbara Creecy, on Tuesday confirmed that she had decided to dissolve the Board of the embattled Road Accident Fund (RAF).
Image: File
Minister of Transport, Barbara Creecy, on Tuesday confirmed that she had decided to dissolve the Board of the embattled Road Accident Fund (RAF).
The state-owned entity responsible for compensating victims of road accidents has faced significant challenges over the years, including costly legal battles, internal conflicts, and prolonged vacancies in key leadership positions.
These problems are also said to have made it difficult for the fund to operate effectively, causing delays in claim processing and putting additional pressure on its financial resources.
Following the Minister’s announcement on Tuesday, several political parties expressed strong support for the decision, describing it as a necessary and long-overdue step to address the deep-rooted challenges at the entity.
With uncertainty surrounding the RAF, IOL takes a closer look at the sequence of events that led to the dissolution of the Board at the state-owned entity.
Key events leading to the dissolution of the RAF board
14 April 2025
In a media briefing, RAF CEO Collins Letsoalo denied all allegations related to a R79 million lease deal currently being investigated by the Special Investigating Unit (SIU).
He rejected claims that procurement rules were bypassed to award the lease for the RAF’s Johannesburg offices and said the process followed proper procedures.
May 28, 2025
The RAF Board and senior officials presented themselves before Parliament’s Standing Committee on Public Accounts (SCOPA), where they were met with rigorous questioning. Committee Chairperson Songezo Zibi highlighted that crucial positions, such as Head of Legal and Chief Claims Officer, had remained unfilled for more than two years.
The committee also expressed concerns regarding the costly legal battles that the entity was losing, as well as the growing backlog of unpaid claims.
June 3, 2025
Letsoalo was suspended by the Board, allegedly for failing to appear before SCOPA in breach of a statutory summons.
His absence from the hearing incited outrage among MPs and exacerbated the ongoing governance crisis. The suspension intensified internal tensions, with some board members reportedly divided over how to address the situation.
June 5, 2025
Creecy issued letters to the eleven members of the RAF Board, allowing them to make representations regarding her intention to dissolve the Board due to their failure to discharge their fiduciary duties effectively.
24 June 2025
SCOPA announced a full-scale parliamentary inquiry into the entity, citing ongoing allegations of financial mismanagement, wasteful spending, and governance failures.
The Committee also said its decision came after “months of repeated attempts to obtain truthful, complete information from the RAF Board and executive management to little avail.”
June 27 2025
RAF responded to the upcoming SCOPA inquiry by pointing out improvements in its operations. It said claimant payments rose to 83% of costs in 2023/24, while administrative expenses dropped to 17%.
The fund acknowledged its long-term financial challenges but stressed ongoing efforts to improve governance, including dedicated ethics and forensic teams and a fraud hotline.
July 13 2025
Letsoalo and suspended Chief Investment Officer Sefotle Modiba accused the legal sector, including parts of the judiciary, of widespread corruption affecting the fund. They alleged that RAF had been exploited for financial gain by certain law firms and that this systemic corruption was deeply entrenched.
July 15 2025
Minister of Transport Barbara Creecy announced the dissolution of the board, citing persistent governance and operational challenges that undermined the fund’s ability to fulfil its statutory mandate.
mthobisi.nozulela@iol.co.za
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