The Public Servants Association (PSA) has delivered a blistering rejection of government plans to introduce a new vehicle-linked fee aimed at bailing out the financially beleaguered Road Accident Fund (RAF), warning that the proposal would place an intolerable and unfair burden on public servants and ordinary South Africans already reeling from the crushing weight of rising living costs. The union’s forceful stance sets the stage for a major confrontation between organised labour and the state over who should bear the cost of rescuing the embattled fund.
The proposed levy, which has not yet been formally detailed but is understood to involve an additional charge tied to vehicle ownership or licensing, is being floated as a desperate measure to shore up the RAF’s precarious finances. The fund, which provides compulsory cover to all road users injured in accidents caused by negligent drivers, has been plagued by years of mismanagement, ballooning claims, and unsustainable payouts that have left it teetering on the brink of insolvency. Government officials have argued that without fresh revenue streams, the fund may soon be unable to meet its obligations, leaving accident victims without critical compensation.
However, the PSA has dismissed the proposal as a short-sighted and regressive solution that punishes the very people the state purports to serve. “Public servants are not an endless source of revenue for government’s failures,” said PSA spokesperson Reuben Maleka in a strongly worded statement. “Our members are already battling skyrocketing fuel prices, escalating food costs, and stagnant salaries that have not kept pace with inflation. To now ask them to dig even deeper into their pockets to fix a fund that has been mismanaged for years is not only unjust—it is insulting.” The union has called on the government to instead explore alternative measures, including rooting out corruption within the RAF, tightening claims management, and recovering funds from perpetrators of fraudulent claims.
The PSA’s rejection carries significant weight, as the union represents more than 230,000 public servants across all spheres of government. Its leadership has indicated that it will mobilise its members against the levy, raising the prospect of industrial action if the government proceeds with the proposal. “We will not stand by while hard-working civil servants are treated as a cash cow,” Maleka added. “If the government insists on pushing this through, they must be prepared for the consequences.”
Industry observers note that the RAF’s financial woes are not new. The fund has been under administration for years, with successive ministers of transport promising reforms that have largely failed to materialise. A 2023 actuarial report estimated the RAF’s liabilities at over R40 billion, a figure that continues to grow as claims multiply and investment returns remain insufficient to cover payouts. While the government has previously considered increasing the fuel levy to boost the RAF’s coffers, that option has proven politically toxic, particularly given the public outcry over record-high petrol prices.
The PSA has instead proposed a suite of alternatives, including stricter enforcement of traffic laws to reduce the number of accidents, a comprehensive review of the RAF’s claims processes to eliminate fraud and abuse, and the introduction of a no-fault insurance system similar to those in other countries, which could reduce administrative costs and streamline payouts. The union has also called for a forensic audit of the fund’s expenditure to identify where billions of rands have been lost to corruption and inefficiency.
As the government prepares to enter negotiations with labour stakeholders, the PSA’s uncompromising stance underscores the deep mistrust between public servants and the state—a relationship already strained by years of austerity, wage disputes, and broken promises. For now, the proposed vehicle levy remains just that—a proposal—but the battle lines have been clearly drawn. Whether the government can find a politically palatable way to rescue the RAF without alienating its own workforce remains an open question, but one thing is certain: the PSA has made it abundantly clear that public servants will not foot the bill for the state’s failures without a fight.
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