Victims of motor accidents are increasingly becoming secondary victims of theft as unethical legal representatives continue to swindle them out of their Road Accident Fund (RAF) millions.
According to a report by the SABC, the fund continues to receive complaints from beneficiaries who have been left high and dry by fraudsters, including lawyers who swindle beneficiaries of their monies.
The fund has indicated that it’s received no less than 1000 complaints involving law firms and other practitioners being at the centre of illegality in the 2023/24 financial year.
In a recent case, 33-year-old Neo Moreki from the Vaal was swindled of R2 million in a settlement in 2019 after being involved in a car crash.
In another matter, in February, the RAF welcomed the rearrest of a lawyer who had been on the run since 2022 saying it was, “profoundly pleased” that 42-year-old lawyer and alleged fraudster, JoAnne Mantladi Mmela, was arrested by the Middelburg based Hawks (Directorate for Priority Crime Investigation) on Saturday, February 24 2024.
Granted bail in September 2022, Mmela was meant to reappear in court on December 5, 2022, but instead of honouring the conditions of her bail, she absconded and went on the run.
Mmela, who practised law under Mmela and Associates Inc, was slapped with fraud and theft charges relating to the misappropriation of funds from the RAF after she was entrusted with managing an RAF claim on behalf of a client’s child.
Mmela is not alone as more and more complaints are lodged against unscrupulous lawyers almost on a daily basis.
In an accident that happened in 2011 and filed with the RAF, the Eastern Cape Hawks arrested a 52 year- old foreign national on charges of fraud and corruption on February 7, this year. This is after a claim was filed with the RAF on behalf of a minor through legal representatives based in Southernwood, East London.
However, inquiries by the victim revealed discrepancies as the purported successful claim of over R2 million was allegedly deposited into a trust account of the law firm where the suspect served as the sole signatory.
The matter was ultimately reported to the Serious Commercial Crime Investigation (SCCI) team of the Hawks to conduct an intensive investigation. The investigation uncovered that the funds intended for the victim never reached her but were allegedly misappropriated by the suspect for his personal use.
In January this year, the RAF in KZN welcomed the conviction and sentencing of a former attorney who swindled money from his clients.
Langelihle Dube was sentenced to 10 years imprisonment for stealing R2.3 million from clients including R1.4m which was allegedly paid into Dube's account after a youngster was seriously injured in a car crash.
Independent Media reported that Dube failed to make payment to the boy's family and also stole a R900,000 life insurance payment from a deceased estate.
According to RAF spokesperson McIntosh Polela, there have been almost a thousand reported cases of fraud during the 2023/24 financial year, with 417 cases referred to the police.
“We have had at least 417 cases referred to the SAPS. These case have become prevalent as we continuously receive complaints about colluding with claimants themselves sometimes to defraud the RAF or sometimes we have lawyers defrauding claimants,” he said.
In November last year, the SIU reported that it would be investigating more than 100 law firms involved in defrauding the RAF and some of the victims.
The SIU reported that some firms had already admitted guilt and it had also recouped more than R300 million of defrauded funds paid on behalf of victims.
One of the victims was Kabelo Meyi from Polokwane Limpopo who alleged that a firm of attorneys (whose name is known to this publication), was withholding some of the payments due to him.
“After having empowered the firm to claim on my behalf in 2019, I still have not received any form of payment from them. They keep saying I must come back next month to no avail. These people owe me more than R700 000,” Meyi said.
Attempts to get comment from the law firm were unsuccessful at the time of going to print.
Saturday Star