PRETORIA – The Gauteng High Court has granted an urgent interim interdict in favour of the Road Accident Fund (RAF), blocking the South African Revenue Service (SARS) from deducting R5.1 billion from levies collected on behalf of the RAF.
The dispute stems from a 2024 settlement agreement between SARS and Eskom, which arose after SARS denied Eskom diesel refunds for the 2019–2021 period. SARS agreed to pay Eskom R5.1 billion, but intended to recoup the amount from RAF levies—an act the RAF strongly opposed.
In a judgment handed down on 26 March 2025, Judge Tolmay found that SARS’s unilateral deductions would severely impact the RAF’s ability to deliver on its core mandate of compensating road accident victims, constituting roughly 10% of the Fund’s annual income.
The court was also critical of SARS’s conduct during the intergovernmental dispute resolution process. Despite knowing the financial implications, SARS proceeded with its first R1.2 billion deduction in February 2025 while facilitation proceedings were ongoing and failed to disclose key information to the RAF and facilitators.
Judge Tolmay ruled that SARS’s actions undermined the spirit of the Intergovernmental Relations Framework Act and described its approach as “astonishing.” She noted that SARS refused to share the Eskom settlement details—even though the agreement itself permitted disclosure to the RAF and National Treasury.
The ruling held that the RAF had met all the legal requirements for an interim interdict: a prima facie right, risk of irreparable harm, lack of an alternative remedy, and the balance of convenience favouring the Fund.
“The RAF’s precarious financial position is undeniable,” wrote Tolmay. “The reduction of R1.2 billion per month for four months could lead to financial collapse. SARS, on the other hand, will not suffer irreparable harm.”
The interim interdict remains in effect for 45 business days while the parties are expected to resolve their dispute under the Intergovernmental Relations Framework Act. If no resolution is reached, the RAF may pursue further legal action to recover any deductions already made.
The RAF welcomed the ruling in a press statement, reaffirming that deductions for unrelated settlements jeopardize its financial sustainability and its ability to serve motor vehicle accident victims nationwide.
