RAF Claimant Received R10 400, While Attorneys Got Paid R241 000

The Road Accident Fund (RAF) has made significant progress in reducing debt and cutting legal costs, saving an impressive R24 billion over the past four years. But despite these improvements, serious concerns remain about unethical practices by some attorneys, leaving road accident victims vulnerable to exploitation.

Debt Reduction and Financial Recovery

In its 2023/24 performance report, RAF CEO Collins Letsoalo revealed that short-term debt (RNYP — requested but not yet paid) has been reduced to R8.27 billion, down from a peak of R19 billion.

“RNYP is essentially money we owe claimants but cannot yet pay,” Letsoalo explained. “By managing this, we’ve averted what could have been a complete financial collapse.”

Without intervention, projections indicated debt could have soared to R51.4 billion, which would have been catastrophic for both the fund and claimants.

Legal Costs Cut by More Than Half

Another major improvement has been in legal costs:

• In 2019/2020, RAF spent R9.4 billion on legal fees.
• By 2023/24, this was reduced to R3.89 billion, saving R24 billion over four years.

These savings were largely achieved by settling more claims out of court, avoiding lengthy and costly legal battles.

Claims and Settlements

• 79,377 claims were registered in 2023.
• 63,015 claims were finalised.
• The average settlement per claim increased by 9.54%, reaching R287,000 per claim.

While these numbers show progress, concerns remain about whether claimants are actually receiving the compensation they are owed.

Exposing Attorney Misconduct

Despite the fund’s improvements, some attorneys have acted unethically, taking advantage of claimants:

• RAF reported Spruyt Incorporated to the Legal Practice Council for “gross misconduct and cruelty to claimants.”
• Attorneys were reportedly underpaying claimants while keeping the bulk of payouts for themselves under the guise of “administrative costs.”
• Example: RAF paid R241,000 to Spruyt Inc for a claimant, yet the claimant received only R10,400.
• This violates the Contingency Fees Act 66 of 1997, which limits legal fees to 25% of the compensation.

Looking Ahead

The RAF’s efforts to reduce debt and legal costs are promising, but the fight is far from over. Road accident victims remain at risk — not only from delayed payments but also from unscrupulous attorneys exploiting their hardship.

For the RAF to restore public trust, it must hold unethical practitioners accountable and ensure that every cent of compensation reaches the intended victims. Financial stability matters, but protecting people must always come first.