SIU investigates law firms that received R340 million duplicated from RAF

The Special Investigating Unit (SIU) is investigating 102 law firms and sheriffs who received about R340 million in duplicate payments from the Road Accident Fund (RAF).

The firms received duplicate compensation payments for persons injured because of motor vehicle accidents.

Instead of returning the duplicate payments to RAF, legal practitioners opted to either keep the money in their trust accounts or use it for their personal benefit.

ALSO READ: SIU investigates law firms that received R340 million duplicated from RAF

Debt process

Presenting its preliminary findings to parliament’s standing committee on public accounts on Wednesday, the SIU said it has recovered R18 million through an 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 in RAF.

SIU spokesperson Kaizer Kganyago said the unit has approached several legal practitioners with the evidence and they have opted to cooperate with the SIU investigation in defrayal of their indebtedness by the signing of acknowledgments of debt (AOD).

“To date, the SIU has signed the AODs to the value of R68 000 000. The signing of AODs does not absolve the legal practitioners from any civil litigation that the SIU may institute or refer for criminal prosecution or being reported to a regulatory body, in this case, the Legal Practice Council.

“So far, the SIU has made one referral to the National Prosecuting Authority for evidence pointing to criminal conduct. There are 10 possible NPA referrals identified and five possible referrals to the Legal Practice Council,” Kganyago said.

Irregularities

Kganyago added that the SIU is investigating 10 contracts for possible irregularities, fruitless and wasteful expenditure, and some of the contracts were flagged by the auditor-general.

“Four contracts to the value of approximately R837 million have been identified for review and possible cancellation.”

The SIU is in terms of Proclamation R44 of 2021 authorised to investigate allegations of corruption and maladministration in the affairs of RAF, and to recover any financial losses suffered by the state.

The investigation has five focus areas, including duplicate claim payments to attorneys, claimants and sheriffs; procurement and tender irregularities; RAF payment claims from service providers who have rendered services to the victims of accidents; possible inflated invoices submitted by the service providers and fraudulent claims.

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