R18 million linked to Road Accident Fund fraud recovered
SA – The Special Investigating Unit (SIU) has signed acknowledgments of debt with law firms and attorneys to the value of approximately R68 million, which constitute unlawful acts of appropriation.
The firms received duplicate payments from the Road Accident Fund (RAF) as compensation to persons injured because of motor vehicle accidents on South African roads.
Instead of returning the duplicate payments to RAF, legal practitioners opted to either keep the money in their Trust accounts or use it to their personal benefit. 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 in the affairs of RAF.
The Proclamation authorises the SIU to investigate compensation payments made by RAF to claimants or claimants’ agents, payments made by RAF in a manner that is contrary to the applicable legislations, and to recover financial losses suffered by the State or RAF.
As part of Phase 1 of 4 of the investigation, the SIU is looking at 102 law firms which received duplicate payments from RAF of approximately R340,000. When approached 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.
Furthermore, the SIU is closely working with the Legal Practice Council on the RAF investigation and other law enforcement agencies where the need arises for active collaboration to ensure effective implementation of SIU investigation outcomes and consequence management.
Special Investigation Unit (SIU) South Africa press release
Fraud and corruption allegations can be reported to siu@hotline.co.za or call their hotline on 0800 037 774.
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