South African taxpayers pay R546 million to foreign nationals in Road Accident Fund claims

In a startling revelation, Acting Transport Minister Kgosientsho Ramokgopa disclosed that South African taxpayers have collectively disbursed a staggering R546 million in claims to foreign nationals through the Road Accident Fund (RAF) during the 2024/25 financial year.

This announcement was made in response to probing parliamentary questions from ActionSA MP Alan Beesley, shedding light on the financial burden placed on local taxpayers amidst ongoing economic challenges.

“A total of R42.94 billion was paid across 128,716 claims during the 2024/25 financial year. R548 million was paid in respect of claims where the claimant or injured is a foreigner,” Ramokgopa said.

He revealed that a total of 222 personal claims were registered where the claimant or injured is a foreigner.

Only 17 out of 222 claims filed against the South African government have been successfully settled as of September 13, 2025. Meanwhile, 12 claims are currently being considered with an offer in progress, while 115 remain open and in progress.

Beesley said it was concerning that taxpayers’ money from the fuel levy covered the medical expenses of foreigners.

“It is quite a big concern that we use taxpayers’ money to pay foreigners. The question is why all of that is happening in our country?” he asked.

Beesley also said the matter was begging a question as to how much was spent by the State on health and education on foreigners as opposed to supporting South Africans.

He questioned how many of the RAF claims paid to foreign nationals were legitimate and whether they were genuine or not in light of the RAF being a cesspool of corruption.

Beesley said the Road Accident Fund needed to be relooked and ensure that visitors to the country have their own medical cover.

ActionSA will take up the issue and see whether to introduce some type of legislation in Parliament to plug the gap in law. “That is whole reason we asked the questions to the minister to find out how much it is costing the taxpayer,” he said.

He noted that the Standing Committee on Public Accounts will institute an inquiry into the affairs of the RAF.

“One of the things we must come up with as the committee is to make recommendations and one of the recommendations is to look at the amount paid to foreigners,” Beesley said.

The cost on claims paid to foreigners comes after the Department of Transport in July indicated that it will continue to enhance the RAF’s capacity to fulfil its statutory obligations and ensure a speedy and equitable access to the Road Accident Benefit Scheme by road accident victims.  

The department had said it was to finalise the Road Accident Benefit Scheme Bill, which will introduce a no-fault system to make it easier for road accident victims to access the benefits without costly legal bills.

Deputy Minister Mkhuleko Hlengwa, who is delegated to oversee matters related to the RAF and other departmental entities, said the bill was waiting for Cabinet consultation with necessary cluster committees.

“We are working to ensure it reaches Cabinet,” Hlengwa said in an interview.

He also said they expected the bill to move with the speed as part of the reforms necessary for the RAF and make sure they deal with challenges arising form the construct of the RAF Act.

“The intention is to ensure, among other things, there is long term financial sustainability of the entity and to deal with systemic backlogs that are there.

“The whole intention of the legislative reform is to have a RAF that is fit for purpose and that responds to its core mandate,” Hlengwa said.

He explained that the bill proposes a defined scheduled no-fault system, and will also deal with the challenge of claims by foreigners.

“It does call for tourists to take up insurance so that they can be able, among others, not milk the system. It is a comprehensive overhaul of the entity to deal with long term viability and sustainability of the RAF,” Hlengwa added.

mayibongwe.maqhina@inl.co.za