Waseem Carrim, Road Accident Fund CEO: Outlines Plans to End Crisis

• Waseem Carrim will become the fifth CEO of the Road Accident Fund in just over a year, taking office on November 1.
• The RAF is technically insolvent, owes R22.18 billion for settled but unpaid claims as of June, and has liabilities exceeding R400 billion.
• Carrim's immediate priorities include reforming the financial model, rebuilding claims administration, controlling litigation, and combating fraud.
• A key part of his strategy involves adopting the Road Accident Benefit Scheme Bill, which would introduce a no-fault system and structured payments.
• Carrim believes the fuel levy cannot be scrapped in the short term but advocates for a complete rethink of the RAF's operating model.

A cornerstone of Carrim's proposed turnaround strategy for the RAF is the adoption of the Road Accident Benefit Scheme (RABS) Bill.

The Road Accident Fund (RAF) is set to welcome Waseem Carrim as its new Chief Executive Officer on November 1, marking a significant leadership change for the embattled institution. Carrim's appointment makes him the fifth individual to hold the CEO position in just over a year, highlighting a period of considerable instability. This high turnover occurs as the RAF grapples with technical insolvency, a substantial debt to road accident victims amounting to billions of rands, and the absence of a permanent governing board since July of the previous year.

The financial distress of the RAF is profound. Despite receiving over R50 billion annually from taxpayers, primarily through a fuel levy paid by motorists, its total liabilities have soared past R400 billion. A critical indicator of its operational challenges is the R22.18 billion owed to claimants for cases that have already been settled but remain unpaid as of the end of June. This figure escalated by R3.62 billion in a mere three-month period, underscoring the urgency of the situation. Carrim, a chartered accountant with prior experience as CEO of the National Youth Development Agency (NYDA) and the National Student Financial Aid Scheme (NSFAS), steps into this challenging role following a rapid succession of four acting CEOs since April 2025.

Despite the daunting challenges, Carrim expresses confidence in the RAF's potential for recovery, stating that its current dysfunction is "not insurmountable." His optimism is rooted in several factors: the backing of a strong and supportive transport minister, Barbara Creecy; the presence of an interim board comprising capable individuals; and a five-year mandate to implement necessary reforms. Crucially, Carrim sought and received reassurance during his interview process regarding the political will to enact essential legislative and policy changes.

Carrim's immediate focus encompasses a multi-pronged strategy to stabilize the RAF. His short-term priorities include a comprehensive reform of the fund's financial model, a complete overhaul of its claims administration processes, stringent control over litigation expenses, and an aggressive stance against fraud and corruption. Furthermore, he aims to mend and normalize the strained relationships with key stakeholders, including legal professionals, medical practitioners, and claimants. Acknowledging the severe claims backlog, Carrim intends to present a clear plan for bringing claims under control and enhancing efficiency for the public, rather than promising an immediate resolution to all existing claims. He also stressed the importance of addressing all finalized cases of fraud and corruption, including those that may involve law enforcement agencies.

A cornerstone of Carrim's proposed turnaround strategy for the RAF is the adoption of the Road Accident Benefit Scheme (RABS) Bill. This legislative change would introduce a no-fault system, fundamentally altering how claims are processed by replacing traditional lump-sum payouts with structured, regular payments. Under a no-fault framework, individuals injured in road accidents would receive benefits irrespective of who caused the collision, thereby eliminating the need for lengthy litigation and disputes over liability. Carrim believes this shift is vital to address the pervasive "low trust" in the organization, which currently compels many claimants to pursue legal action, often at significant personal cost.

The RAF's operating model, particularly its reliance on the fuel levy, is also under scrutiny. The levy, currently set at R2.25 per litre, contributes approximately 7% to 8% to the pump price of fuel in South Africa, depending on the type and location. While some civil society groups advocate for its removal, Carrim cautions against scrapping the fuel levy in the short term, noting that several civil society bodies agree with this cautious approach. However, he emphasizes the necessity of a fundamental rethink of the fund's operating model, specifically concerning how it receives and settles claims, and how the value of its liabilities is managed.

Lawyers and compliance officers dealing with Road Accident Fund claims should closely monitor Waseem Carrim's stated priorities, particularly his plans for reforming claims administration, controlling litigation, and addressing fraud. The potential adoption of the Road Accident Benefit Scheme Bill could fundamentally alter the claims process, moving towards a no-fault system and structured payments, requiring a significant shift in legal strategy for claimants and their representatives.

Source: Original reporting via Moneyweb