R7.3 billion paid to foreign nationals involved in car accidents in South Africa

The Road Accident Fund (RAF) paid out R7.3 billion to foreign nationals, with one payout amounting to R16.7 million, while South African claimants wait years for compensation.

This issue was raised by National Assembly member Marlon Daniels in Parliamentary questions to Transport Minister Barbara Creecy regarding the ongoing review of the fund.

Daniels asked the Minister why her department has not yet introduced a bill to close the legal gap that allows undocumented foreign nationals to claim compensation.

He also asked her to justify the RAF paying over R7 billion to foreign nationals while South African claimants wait years for compensation and whether payments are affordable.

That is because the fund’s Chief Executive Officer admitted that the entity is technically bankrupt.

In response, the Minister explained her department is in the process of reviewing the Road Accident Fund (RAF) legislative dispensation that would ensure its financial stability. 

“The review will deal with, amongst others, the high medical costs, litigation costs, lump sum payments and by providing for persons who can claim under the RAF for damages arising out of a motor vehicle accident,” she said.

“The proposed draft Road Accident Benefits Scheme (RABS) is envisaged to deal with the contributory factors and to also clearly provide who is entitled to claim by removing the reference to ‘any person’ in the legislation and provide for categories of persons that lodge a claim.”

Minister Creecy noted that the RAF does not compensate claimants based on nationality, race, citizenship, or immigration status. 

Instead, claims are paid according to RAF Act requirements and applicable court decisions, and compensation paid to one category of qualifying claimants does not happen at the expense of another.

“Compensation is awarded based on the merits of each claim, compliance with statutory requirements, the availability of supporting evidence, court orders where applicable, and settlement or adjudication outcomes,” said Creecy.

“The RAF remains committed to improving claims management processes and reducing turnaround times for all qualifying claimants.”

Clearing the backlog

Despite being technically bankrupt, the RAF continues to fulfil its mandate and process valid claims within the limits of available resources.

The Minister said an accounting deficit or unfunded liability does not mean the RAF is unable to meet its statutory obligations.

“Government continues to monitor the financial sustainability of the fund, and various operational and legislative measures have been considered over time to improve its long-term financial position,” she said.

Fellow National Assembly member Christopher Malematja asked the Minister what measures have been implemented to fast-track the historical claims backlog and pay within reasonable time frames.

He also asked to know by what date she envisages the total closure of historical debt that ordinary poor persons are awaiting.

In response, the Minister confirmed that the RAF has approved a dedicated Backlog Reduction Project to deal only with historical claims.

“Once established, the project will run separately from the processing of new claims, so that older matters receive dedicated attention without delaying current claimants,” she said.

Under the Backlog Reduction Project, each historical claim will be reviewed and moved toward settlement or finalisation, depending on the findings.

The project operationalises the 2026/27 Annual Performance Plan, committing the fund to a dedicated backlog reduction programme and to reducing net open claims by 10% in 2026/27, 12.5% in 2027/28 and 15% in 2028/29.

“Reducing the historical backlog is a strategic priority in the RAF’s 2026/27 Annual Performance Plan,” added the Minister.

“The backlog will be reduced each year in line with the targets approved in the plan, and progress will be reported every quarter.”