Do Foreigners Drain South Africa's Road Accident Fund? Data Disprove the Claim

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The Misconception of Foreigners 'Bleeding' South Africa's Road Accident Fund

The claim that non-South African citizens are draining the Road Accident Fund (RAF) has gained significant traction, but data suggests otherwise. This narrative, initially raised by former RAF chief executive Collins Letsoalo and later echoed by spokesperson McIntosh Polela, has been debunked by the fund itself and independent analyses.

Letsoalo claimed in May 2024 that the RAF paid out R18 billion to non-South African citizens over five years, with an annual figure of R3.6 billion. He further stated that undocumented foreigners were exploiting the system. These claims were repeated in media outlets and social media platforms, contributing to anti-migrant sentiment in a country already grappling with high unemployment and healthcare challenges.

However, the actual figures tell a different story. According to the RAF’s own breakdowns and the transport ministry’s parliamentary reply, the total amount paid to non-South African citizens from 2019/20 to 2023/24 was approximately R8.6 billion—less than half of what Letsoalo claimed. Even when considering the period from 2020/21 to 2024/25, the total is around R7.3 billion. This means the figure cited by Letsoalo and others is significantly inflated.

The RAF clarified that it had no information on the origin of the R18 billion figure. When asked about Polela’s repeated statement during a radio interview, the communications team acknowledged he “misspoke” but did not issue a public correction.

Experts have emphasized that the RAF’s financial troubles stem from internal mismanagement rather than foreign claimants. The fund has faced investigations into alleged corruption and governance issues since 2025. Letsoalo was suspended, and the board was dissolved, signaling serious concerns within the organization.

The Financial Structure of the Road Accident Fund

The RAF is a public entity funded primarily through a levy added to fuel prices. The national treasury sets this levy at R2.18 per liter, generating approximately R50 billion annually. The fund compensates individuals injured in road accidents or their families in case of fatalities.

Despite its critical role, the RAF has struggled with financial instability. A key factor in its difficulties is a controversial shift in accounting practices. Prior to the change, the RAF’s 2019/20 annual report listed its claims liability at around R330 billion. After switching to a different unapproved accounting framework, this liability dropped dramatically to under R30 billion—a 90% reduction on paper.

This change allowed the RAF to delay processing claims, effectively keeping them “in transit” and avoiding liabilities on the balance sheet. The auditor-general deemed this practice misleading and has been involved in legal battles with the RAF over the issue.

Expert Perspectives and Parliamentary Inquiry

Kirstie Haslam, a personal injury attorney involved in RAF policy discussions, described the R18 billion figure as “wholly inaccurate.” She highlighted that recent reports show a decline in payouts to non-South African citizens, which make up less than 1% of total claims expenditure. In 2024/25, the total claims expenditure exceeded R40 billion annually.

Songezo Zibi, chairperson of the Standing Committee on Public Accounts (Scopa), addressed misinformation about foreign claimants in a video post. He stressed that the volume of claims from non-citizens is too small to be a major contributor to the RAF’s financial struggles. Instead, he pointed to systemic governance failures, a large backlog of unprocessed claims, and contentious accounting changes as the real issues.

The Broader Implications

The allegations emerging from the Scopa inquiry include widespread maladministration, financial mismanagement, and a lack of transparency. These issues have placed the RAF under intense scrutiny, with calls for reform and accountability.

While the myth of foreign claimants draining the fund persists, the evidence points to internal problems as the primary cause of the RAF’s financial instability. The focus should be on addressing governance failures, improving efficiency, and ensuring transparent financial practices rather than scapegoating non-South African citizens.

In conclusion, the claim that the RAF is being “bled dry” by foreign nationals is not supported by data. The true challenges facing the fund lie in its internal management and accounting practices, not in the number of claims submitted by non-citizens. Addressing these issues will be crucial to restoring public trust and ensuring the fund can fulfill its mission of supporting those affected by road accidents.