RAF shells out R546 million to foreign claimants in 2024/25 financial year

The Road Accident Fund (RAF) has dispensed R546 million to foreign nationals in claims during the 2024/25 financial year.

In a recent parliamentary session, acting Transport Minister Kgosientsho Ramokgopa highlighted that while the RAF allocated a substantial R42.94 billion across a total of 128,716 claims, the payouts directed to foreign individuals have sparked renewed debates regarding the financial implications for South African taxpayers.

Ramokgopa disclosed these figures while answering questions from ActionSA MP Alan Beesley, who has raised concerns regarding the legitimacy of claims filed by foreign nationals. According to the minister's report, a total of 222 claims were registered involving foreign claimants or victims. Alarmingly, of these, only 17 have been successfully resolved as of September 13, 2025.

The remaining claims, according to the Cape Times, present a concerning picture: 78 were rejected, objected to, or flagged as duplicates, while 12 are currently under negotiation with an offer in progress, leaving 115 claims still open and awaiting resolution.

Beesley expressed dissatisfaction with the situation, questioning why taxpayers’ contributions, particularly from fuel levies, are being used to cover medical costs for foreigners. He challenged the thought process behind these claims and highlighted a broader issue regarding public finances, asking how much expenditure is directed towards healthcare and education for non-nationals rather than South African citizens. His pressing inquiries raise the fundamental issue of whether RAF claims submitted by foreigners are legitimate, especially in light of ongoing allegations of corruption within the fund.

“We need to examine how many of these claims are valid," Beesley stated. "The RAF has garnered a reputation as a cesspool of corruption, and it needs a thorough review.” In response, he indicated that ActionSA would consider legislative measures aimed at protecting taxpayer interests regarding medical costs incurred by foreigners in South Africa.

This issue is further exacerbated by the Department of Transport's announcement in July that it plans to enhance the RAF’s capabilities to meet its statutory obligations more effectively. Among the proposals is the introduction of the Road Accident Benefit Scheme Bill, which aims to establish a no-fault system, hence facilitating easier access for road accident victims while minimising legal expenses.

Deputy Minister Mkhuleko Hlengwa confirmed that the bill is presently under consideration by the Cabinet and its relevant committees, underscoring a collective goal to position the RAF as a sustainable entity that adheres to its core responsibilities. “We are aiming for swift progress with the reforms to tackle the systematic backlogs currently plaguing the fund,” Hlengwa remarked, addressing concerns over the need for responsible financial management.

IOL