Lawyer ‘pocketed RAF client’s R1 million’

POLICE and the Road Accident Fund are investigating a case of fraud against lawyer Mbongeni Mkhize after he allegedly pocketed more than R1 million in compensation owed to car accident victim Siyabonga Mbuthuma, 33.

Mbuthuma, from Gcilima village in Port Shepstone, has opened a case of fraud against Mkhize.

Mbuthuma said he could not understand why no arrest had been effected since he opened the case in February at Margate police station. Mkhize was from the area. He had gone to the investigating officer several times but was told police were still looking for Mkhize because they had been unable to reach him on his cellphone, Mbuthuma said.

According to a proof of payment, the RAF paid just over R1.9 million into Mkhize's account for Mbuthuma's compensation claim but Mbuthuma said he received only R540 000.

He was never informed of the total amount of his claim paid and found out only after he was helped by Samkelo Sithole of MNM Credit Solutions, who investigated and discovered that the lawyer had claimed R1.9m in total.

Sithole said after getting confirmation from the RAF, he contacted Mkhize to confront him and the pair met at Mkhize's request.

He alleged that when they met Mkhize offered him R20 000 as a “shut-up fee” and asked him not to pursue the matter.

Sithole said he went to Margate police station with the money to lay bribery charges, but a few minutes after leaving the station he allegedly received a call from Mkhize asking him why he went to the police and demanding his money back.

He said he was surprised that police allegedly contacted Mkhize because Mbuthuma had been told Mkhize could not be reached on his cellphone. Sithole said he has since been told by police that the bribery case he opened against Mkhize was withdrawn because of insufficient evidence to prosecute.

“This too surprised me – that despite showing police the money and video of Mkhize allegedly handing me the money the case was withdrawn. The investigating officer told me his superior instructed him to withdraw the case because it lacked evidence. I suspect the lawyer has connections in that police station.”

Mkhize had allegedly also threatened to kill him, which he also reported to the police station.

Mbuthuma also has a fraud case pending against a close relative, after he realised that a big portion of his R540 000 had gone missing. He said a bank statement showed the relative had allegedly transferred the money using a cellphone banking app to her account without his knowledge. Attempts to contact the relative were unsuccessful.

Mkhize confirmed that he successfully lodged a claim for Mbuthuma and the RAF did pay R1.9m, but said he paid Mbuthuma R540 000 and took his 25% contingency fee as prescribed by law, denying that he defrauded him.

He said R900 000 had been kept in a trust opened for Mbuthuma after discussions with his family who said that after the accident Mbuthuma's mental capability was affected.

Mkhize also said he was told by Mbuthuma's relative there was no reason to give him the remaining funds now because from the R540 000 the relative was sending R3 000 to Mbuthuma every month to buy food, which Mbuthuma denied. Mkhize also denied bribing Sithole or threatening to kill him.

Police confirmed that a fraud case was under investigation. The RAF said it was investigating the allegations.