South Africa Reviews Road Accident Fund Legislation
Minister Barbara Creecy aims to amend fund rules following legal disputes regarding foreign national claims.
Updated on Oct. 26, 2026 in Financial Crime
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Transport Minister Barbara Creecy has launched a review of the Road Accident Fund legislative framework to address rising costs and liquidity concerns. The government now proposes removing the phrase 'any person' from the legislation to clarify eligibility requirements.
Why it matters
The review follows a series of court rulings that hindered the fund's attempts to exclude undocumented foreign nationals from claiming compensation. This legislative shift is intended to curb mounting financial pressures on the system.
Foreign nationals lodged R23.3 billion in claims between April 2021 and March 2026, with individual payouts reaching as high as R16.7 million. Currently, the fund does not record the immigration status of claimants, relying instead on banking and medical records.
The players
Barbara Creecy
She serves as the Minister of Transport in South Africa and is currently overseeing the legislative review of the Road Accident Fund.
Road Accident Fund
This is a South African public entity responsible for providing compulsory cover to road users against injuries or death caused by accidents.
Pretoria High Court
This judicial body is a division of the High Court of South Africa that presided over the initial legal challenges regarding claimant eligibility.
The details
The government intends to replace current laws with a draft Road Accident Benefit Scheme that applies stricter fraud-risk and identity controls. Previous efforts to exclude undocumented foreign nationals via administrative directive were blocked by the Pretoria High Court and upheld by the Supreme Court of Appeal.
Timeline
Between April 2021 and March 2026, foreign nationals lodged R23.3 billion in claims.
The Pretoria High Court set aside an exclusionary directive in 2024.
In April 2026, the Supreme Court of Appeal upheld the High Court decision.
The Constitutional Court refused to hear an appeal regarding the fund in September 2026.
Legal Context
The proposal to replace the Road Accident Fund with the Road Accident Benefit Scheme follows a pattern of state-funded compensation reform attempts. Recent judicial decisions have restricted the department's ability to enforce exclusionary policies without clear legislative grounding.
The proposed legislative changes may impact how individuals interact with the claims process and the documentation required for verification. Residents should monitor updates regarding the shift to the new Road Accident Benefit Scheme as it progresses through the legislative pipeline.
The takeaway
The government aims to secure the financial sustainability of the fund by clarifying the legal definition of eligible claimants. This move highlights the intersection of judicial oversight and legislative authority in managing state resources.
Further reading
For more on ongoing investigations and policy updates, visit the Financial Crime section.
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