The Special Investigating Unit (SIU) is set to probe over 100 law firms for defrauding the struggling Road Accident Fund (RAF).
According to the SIU, some law firms have admitted guilt and the unit has managed to recoup over R300 million of the defrauded funds which were paid out on behalf of thousands of road accident victims.
Most of the victims have waited years without being paid, with some law firms keeping their payment for themselves while the real victims suffered.
The Star recently spoke to Bonginkosi Madinane and Kabelo Meyi, who have accused two separate law firms of keeping their already approved RAF payments.
Meyi, from Limpopo, accused DS Sello Attorneys of keeping some of the payments from him. He said whenever he enquired about outstanding payments, he was sent from pillar to post by the law firm.
“I was involved in a motor vehicle accident in January 2017. I sustained serious injuries after spending weeks in hospital. I subsequently applied for RAF as soon as I was discharged. When I met my attorney, DS Sello Attorneys, who are based in Polokwane, they promised to help me with the claim (saying) they will take no more than 25%. They took more than 40% of the first payout and kept the rest after receiving over R700 000 from the RAF,” Meyi said.
Meyi said he had beenstruggling to access the payment and other resultant payments claimed by the law firm on his behalf.
A source who deals with RAF payments regularly indicated that some law firms were taking advantage of their clients on a daily basis, adding that these lawyers failed to comply with the rules governing the RAF laws.
“It is also apparent from the case law that contingency fee agreements that do not comply with the provisions of the ACT are invalid. Strict compliance with the Act is necessary to prevent abuses on the part of unscrupulous legal practitioners willing to take advantage of their clients - a phenomenon that unfortunately has become all too common,“ he said.
This week, the Auditor-General briefed the Standing Committee on Public Accounts (SCOPA) on the RAF, which received an adverse audit opinion.
The RAF’s main source of funding is the fuel levy, which amounts to more than R45 billion every year.
It is reported that a large portion of this was plundered through irregular and duplicate payments involving law firms and the sheriff.
“The SIU is investigating 102 law firms which include the sheriffs who received duplicate permits from RAF of approximately R340 million,” said SIU investigations head, Leonard Lekgetho.
According to Lekgetho, when approached by the SIU, many lawyers and law firms opted to co-operate and return the money.
The Auditor-General noting the RAF’s adverse audit opinion, said it needed to set higher targets to reduce backlogs.
Attempts were made to get comment from DS Sello Attorneys but there was no response by the time of going to print.
Madinane has accused another legal firm of failing to pay him the RAF money due to him in full.
“I was informed by your office that I am only entitled to a certain portion payment and I could hardly receive a R25 000 as I had to beg just for a small advance. I was also informed that the money R25 000 will only reflect in my account in seven working days as per transfer. There was nothing mentioned by your staff member about the 75% payment that is due to me,“ Madinane wrote to the law firm in an attempt to get monies due to him.
The Star