Finance Minister Enoch Godongwana has allocated 1.1 billion rand to programs combating HIV and foot-and-mouth disease; however, the Road Accident Fund (RAF) received no appropriations despite having outstanding claims amounting to 449 billion rand.
This information was presented by Godongwana during the Political Declaration on the Medium-Term Budget for 2026 on Wednesday. He stated that 556.7 million rand would be reallocated over the next three years to sustain HIV programs, due to the cessation of funding from the US President's Emergency Program.
These funds will supplement the 3.8 billion rand that were reallocated through the district health grant. Last year, the minister announced the allocation of 26 billion rand to provinces to strengthen HIV/AIDS programs, as well as the reallocation of 410 million rand from the Department of Health in the medium term to compensate for the withdrawal of grant funding by the United States.
Furthermore, it was announced that 20.5 billion rand would be allocated over three years to provinces equally to compensate for increased costs in health and education sectors.
Godongwana also stated that 606 million rand has been allocated to the Department of Agriculture to control foot-and-mouth disease through agricultural measures aimed at strengthening food security and biosecurity. He specified that 423.4 million rand would be reallocated within the Department of Agriculture in the 2026/27 financial year, and 183 million rand transferred from the previous financial year for vaccine implementation.
Nevertheless, the Political Declaration on the Medium-Term Budget provided no appropriations for the Road Accident Fund. The Auditor-General recently found that the fund's obligations for the 2025/26 financial year amounted to 439.49 billion rand, and no funds were earmarked to cover these debts.
The Road Accident Fund reported a decrease in outstanding claims from 304,530 in 2024/25 to 288,574 by March 2026, although the number of claims increased from 116,788 in 2024/25 to 133,903 in 2025/26.
When asked about the reason for the lack of direct allocation to the Road Accident Fund to cover its liabilities, Godongwana replied that 'the RAF is above my pay grade' and referred the matter to CEO Duncan Peters.
Peters stated that the National Treasury has appointed two teams of auditors to assess the RAF's liabilities and their long-term significance to the organization, with the results of the excess unemployment insurance fund's work expected by the end of the year. He added: 'We will receive a budget update next year.'
DA party's finance representative, Kingsley Wakelin, stated that his party demanded structural reform and a complete overhaul of the RAF. Wakelin emphasized that 'a sustainable perspective is the right way forward.'
Meanwhile, Transport Minister Barbara Crisi said her department excluded an increase in fuel levies. She noted: 'We believe first and foremost that the RAF must sort out its internal problems and bring its administration into order.'
Crisi also pointed to the need to change the definition of benefits so that all applicants can receive equal payments regardless of circumstances or legal representation. She stated: 'We want to move to a 'no-fault' system. We believe that the RAF spends too much on lawyers,' adding that the RAF has a history of growing contingent liabilities, inability to handle case backlogs, and a culture of not defending cases. She concluded: 'We need a period to deal with historical cases accumulated in the backlog.'