RAF Head Pushes Legal Reform to Restrict Payouts, Stirring Debate Over Fairness and Sustainability
Road Accident Fund (RAF) CEO Collins Letsoalo is pushing for a controversial legislative amendment that would prevent foreign nationals and high-earning South Africans from claiming compensation from the fund—a move that has sparked a national debate on equity, entitlement, and sustainability.
With his term ending in October 2025, Letsoalo is seeking to revise the RAF Agency Act, aiming to narrow the fund’s scope of beneficiaries. This effort, he argues, is critical to preserving the RAF’s limited financial resources for those he believes need it most: ordinary South African citizens.
According to Letsoalo, the fund disbursed over R3.3 billion to more than 8,000 foreign nationals within a two-year span—an expense he says is unsustainable given the RAF’s chronic financial strain. He argues that foreign nationals should be required to obtain private insurance, as is standard practice in many countries, where non-citizens are typically excluded from accessing public compensation schemes.
“South African taxpayers should not be burdened with compensating people who contribute nothing to the fund,” Letsoalo stated, referencing global norms in public insurance frameworks.
While some South Africans support the proposed reforms—viewing them as a practical measure to prioritize citizens and protect the fund’s long-term viability—critics argue that the plan may violate international human rights and legal standards. Legal experts caution that excluding individuals based on citizenship or wealth could open the fund to constitutional challenges, especially in cases involving non-discriminatory access to state services.
As of now, no legislative changes have been adopted, but the proposal is gaining attention from lawmakers, legal analysts, and civil society groups. Letsoalo’s legacy at the RAF may ultimately hinge on whether his campaign to reform access to the fund succeeds—or whether it intensifies existing legal and political challenges.
