SIU probes 102 law firms over duplicate payments
THE Special Investigating Unit (SIU) says it has signed acknowledgments of debt with law firms and attorneys to the value of approximately R68m constituting unlawful acts of appropriation.
SIU spokesperson Kaizer Kganyago said 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.
Kganyago said the firms did not return the duplicate payments to the RAF, the legal practitioners opted to either keep the money in their trust accounts or use it for their personal benefit.
“To date, the SIU has managed to recover R18m 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.
“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 R340m,” Kganyago said.
He added that the proclamation authorised the SIU to investigate compensation payments made by RAF to claimants or claimants’ agents, payments made by RAF in a manner that was contrary to the applicable legislation, and to recover financial losses suffered by the State or RAF.
Kganyago said that when approached with the evidence, several legal practitioners had opted to co-operate with the SIU investigation in defrayal of their indebtedness by the signing of acknowledgement 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,” Kganyago said.
He added that the SIU was closely working with the Legal Practice Council on the RAF investigation and other law enforcement agencies when there was a need for active collaboration to ensure effective implementation of SIU investigation outcomes and consequence management.