Saturday Star

Fierce backlash against proposed Road Accident Benefit Scheme Bill following RAF board dissolution

Anita Nkonki|Published

The Department of Transport’s move to revive the long-rejected Road Accident Benefit Scheme (RABS) Bill has sparked concerns, following Minister Barbara Creecy’s announcement that she has dissolved the Road Accident Fund (RAF) Board due to ongoing governance and operational failures.

Creecy, who recently took over the transport portfolio, said the dissolution was necessary to stabilise the RAF and restore its ability to fulfil its mandate. 

She also confirmed the department’s intention to finalise the Road Accident Benefits Scheme (RABS) Bill, a move that various organisations say is both undemocratic and dangerous.

The department explained that the RABS Bill seeks to replace the current fault-based compensation model with a no-fault system, removing the need for costly legal processes. 

Civil society organisations, legal experts, and advocacy groups, many of whom have fought against the bill for years, have condemned its reintroduction. Among them is the Association for the Protection of Road Accident Victims (APRAV), which warned that pushing the bill forward again is a direct affront to democracy.

“Parliament has rejected RABS three times already,” said APRAV Deputy Chairperson and spokesperson Ngoako Mohlaloga. 

“The continued attempt to revive it is either deliberate ignorance or a strategic attempt to bypass the will of the people.”

APRAV Chairperson Pieter de Bruyn said the bill was rejected not only by lawmakers but also by road accident victims, legal professionals, disability rights groups, and medical experts.

“RABS would have stripped victims of their right to legal recourse, capped compensation, and imposed rigid limitations,” he said. 

“It was unworkable and unjust, and its continued reappearance shows this is about pushing a political agenda, not real reform.”

APRAV also pointed out that it led a two-year national consultation process that resulted in a credible and workable alternative to RABS, one that would fix the RAF without violating constitutional rights or collapsing the public purse.

Legal expert Kirstie Haslam, a personal injury attorney and partner at DSC Attorneys, told Independent Media that the RABS Bill fails to tackle the real problems at the RAF, namely, poor management, inefficiency, and lack of accountability.

“RABS replaces a broken system with another flawed one,” Haslam said. 

“It doesn’t fix the root causes of RAF’s dysfunction, and worse, it strips victims of access to justice by capping payouts and removing the right to claim for general damages.”

She also added that the bill’s attempt to limit legal oversight raises serious constitutional concerns and could face court challenges if passed in its current form.

Haslam further highlighted troubling trends in the RAF’s finances, which, although improved, have come at a cost. 

The RAF’s 2023/2024 annual report shows the deficit has dropped from R8.43 billion to R1.59 billion, but partly due to reduced medical and loss-of-earnings payouts.

Despite the tightening of spending, courts continue to issue significant awards. 

She revealed a series of recent payouts, such as in April, when a woman received over R4.6 million following the death of her husband in a motorcycle accident. That same month, another claimant, Seronica Nathram, was awarded nearly R3.9 million for injuries sustained in a crash.

Another case involving the Road Accident Fund that commanded attention involved 16-year-old Ashwell Bernard Jones, where the Western Cape High Court awarded Jones just under R4,979,832 for future loss of earnings.

He was only eight years old when he sustained a serious brain injury after being hit by a vehicle while riding his bicycle in Lavender Hill in 2017. The court ordered the RAF to cover all legal costs, including expert fees, travel expenses, and the possible appointment of a curator to manage the funds. The RAF was given 180 days to make payment, or interest will begin to accrue.

While many groups remain opposed to the revival of RABS, the Congress of South African Trade Unions (COSATU) has backed the minister, calling the RAF a “disaster site” with liabilities exceeding R400 billion.

“The RAF has become dysfunctional and has failed working-class South Africans for too long,” COSATU said in a statement. “It’s time for bold reform.”

Responding to questions, the RAF Head of Corporate Communications, McIntosh Polela, said the RABS Bill is being revisited to address longstanding issues in the current RAF Act.

“The RABS Bill aims to reduce litigation, cut high administrative costs, and accelerate claim finalisation,” the fund said. “It is part of a broader strategy led by the Department of Transport to ease the pressure on the courts and better serve road accident victims.”

anita.nkonki@inl.co.za

Saturday Star