The Special Investigating Unit (SIU) is investigating 102 law firms and sheriffs suspected of receiving duplicate payments totaling approximately R340 million from South Africa’s Road Accident Fund (RAF).
The funds, meant as compensation for victims of motor vehicle accidents, were fraudulently disbursed twice some of which legal practitioners allegedly retained in trust accounts or used for personal gain.
The SIU, operating under Proclamation R44 of 2021, signed by President Cyril Ramaphosa, is tasked with uncovering corruption and maladministration at the RAF while recovering financial losses suffered by the state.
So far, the unit has retrieved over R318 million from implicated lawyers. Some firms have signed acknowledgments of debt (AoDs) worth about R70 million, agreeing to repay the excess amounts with interest over a structured period.
Actual cash recoveries stand at approximately R41 million, surpassing an earlier reported figure of R18 million. However, the SIU has made it clear that signing an AoD does not shield firms from civil litigation, criminal prosecution, or disciplinary action.
Twelve of the 102 law firms have already been referred to the National Prosecuting Authority (NPA) for alleged misuse of trust accounts an offense under South African law. The SIU is also working closely with the Legal Practice Council (LPC) to address professional misconduct.
The probe, ongoing since 2021, has exposed systemic flaws within the RAF’s payment system, which allows claims to be paid twice once through writs of execution after a 180-day delay and again via its internal system.
The SIU continues to pursue outstanding funds and tackle broader issues of maladministration at the RAF, providing regular updates to Parliament’s Standing Committee on Public Accounts (SCOPA).