RAF Close to Collapse?

COURT ORDER: FUND FAILS TO EXTEND MORATORIUM FOR CLAIMS

- Roy Cokayne

The financially distressed Road Accident Fund (RAF) has received a significant High Court blow, which may lead to its collapse. The RAF applied to the High Court in Pretoria for the extension, revival, or reinstatement of a 180-day moratorium on the execution of writs and warrants for capital and interest against it.

However, Judge Jabulani Nyathi struck the application from the court roll, with costs, because of a lack of urgency.

The RAF had R10.4 billion in unpaid claims at the end of its financial year to 31 March 2025—and a total claims liability of R40.4 billion—despite this, it maintains it can meet its obligations over the next 12 months.

The moratorium gave temporary legal protection from immediate enforcement of court-ordered payments, allowing the RAF up to 180 days to settle claims.

The 180-day payment structure was first implemented informally towards the end of 2020, and then formally from April 2021, after a judgment by the full court, according to acting RAF CEO Phathutshedzo Lukhwareni, in the founding affidavit in support of the RAF's application.

"Claimants have become accustomed to the six-month waiting period to receive payment," said Lukhwareni.