The Special Investigating Unit (SIU) has recovered more than R317 million erroneously paid to lawyers by the Road Accident Fund (RAF).
While undertaking this element of the probe, it is also investigating claims that the RAF lost further millions to maladministration and corruption.
The SIU began its probe in 2021. On Wednesday, it briefed Parliament's Standing Committee on Public Accounts (Scopa) on what it described as a "lengthy and complex investigation" into problems at the cash-strapped RAF.
The unit's probe centres around fraudulent claims and payments, procurement and tender irregularities, alleged maladministration and possibly unlawful conduct of employees.
The investigation has so far cost R3.3m, while the SIU has managed to recover R317.6m from the return of duplicate payments made by the RAF to legal firms.
The SIU's chief national investigations officer, Leonard Lekgetho, told Scopa that 102 law firms, including sheriffs, were being investigated over R340m in duplicate payments from the RAF.
"The RAF has a payment system which dictates that when a claims offer is accepted, whether by settlement or by way of a court order, such claim will wait 180 days before it is paid. As a result, an attorney will attach the RAF bank account by way of writs of execution served by the sheriff, causing the RAF bank to effect payment in terms of the writs upon the 180 days lapsing. The same claim will be paid again [because it was claimed on the RAF's internal system], thus constituting a duplicate payment," Lekgetho said.
Several legal practitioners had signed an acknowledgement of debt amounting to R70m, and others had refunded duplicate payments directly to the SIU.
RAF's rental of its Johannesburg office is also being probed as there were many deviations, and the preliminary findings suggest that this contract may have been awarded irregularly
The SIU is also investigating whether service providers such as hospitals, ambulances, doctors, experts and lawyers systemically overcharged the RAF and whether this was done in collusion with RAF employees.
Lekgetho said the SIU was also investigating RAF employees who had redirected payment intended for service providers into personal bank accounts to the tune of R1.9m.
Meanwhile, payment of about R482m owed to attorneys has been blocked while the RAF investigates whether this is indeed owed.
Source: GroundUp.
