FOR years, some law firms and lawyers have been accused of being part of the cabal that bled the Road Accident Fund (RAF).
Through extensive investigations, the Special Investigating Unit (SIU) recovered millions of rands related to RAF fraud and corruption.
According to the SIU, it has signed acknowledgements of debt with law firms and lawyers amounting to about R68 million, representing unlawful acts of appropriation.
SIU spokesman Kaizer Kganyago said companies had received double payments from the RAF as compensation for people injured in motor vehicle accidents on Mzansi roads.
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He said that instead of returning the duplicate payments to the RAF, the lawyers chose either to keep the money in their trust accounts or to use it for personal gain.
“To date, the SIU has managed to recover R18 million through acknowledgement of debt process following the signing of Proclamation R44 of 2021 by President Cyril Ramaphosa authorising the SIU to investigate serious allegations of corruption and maladministration by RAF,” he said.
Kganyago said that the proclamation authorises the SIU to investigate compensation payments made by RAF to claimants or agents of claimants’, as well as to recover payments made by RAF in a manner that is contrary to applicable legislations, and recover financial losses suffered by the state or RAF.
He said as part of Phase 1 of 4 of the investigation, the SIU is investigating 102 law firms that received duplicate payments from the RAF amounting to about R340 060 277, 97.
“When confronted with the evidence, several legal practitioners have opted to co-operate with the SIU investigation in defrayal of their indebtedness by the signing of acknowledgments of indebtedness.
“The SIU signs acknowledgements of debt with individuals and companies that are subject to SIU investigations, committing to pay back undue financial benefit with interest over an agreed period,” said Kganyago.
He said that they work closely with the Legal Practice Council and other law enforcement agencies on the RAF investigation when active cooperation is needed to ensure effective implementation of SIU investigation findings and consequence management.
