South African Road Accident Fund faces criticism over funding proposals

The Road Accident Fund (RAF) is facing significant pushback from advocacy groups regarding its financial stability and proposed funding models. The Automobile Association (AA) has formally requested that the government scrap the RAF fuel levy entirely, rejecting a proposal to increase the current levy from R2.25 to R3 per litre. AA Chief Executive Bobby Ramagwede argued that the fund collected R47.8 billion in net levy revenue during the previous financial year and stated that “gouging the consumer is not the answer.”

Simultaneously, the Organisation Undoing Tax Abuse (OUTA) has criticized the government for attempting to resolve the RAF’s financial crisis through new funding models rather than addressing alleged long-term mismanagement, corruption, and maladministration. OUTA CEO Wayne Duvenage argued that restructuring the funding model will not resolve the crisis and called for accountability, suggesting that those responsible for the fund’s alleged plundering should face legal consequences or job losses.