The Road Accident Fund (RAF) has lodged a formal complaint against more than 100 law firms with the Legal Practice Council, in its bid to recover hundreds of millions in duplicate payments.
The cash-strapped entity has somehow, in addition to administrative error, double-paid some firms over the years for claims.
However, some firms refuse to pay the money back.
In a letter earlier sent to the Legal Practice Council – the watchdog organisation over the legal fraternity – the RAF is calling on the body to investigate the conduct of 102 law firms, which they say owe it in total more than R340 million.
The RAF names 102 law firms countrywide in its complaint, saying they received the money into their trust accounts and that they are well aware of the fact that it is duplicate payments.
The list of firms, which were attached to the letter sent by the fund to the Legal Practice Council, which the Pretoria News has seen, showed that one firm owed more than R29.7 million that was erroneously double-paid by the RAF. Another owed nearly R25 million.
The next highest amount made as a double payment were two payments of more than R16m to two firms, followed by another of more than R11m to another firm.
Other double payments reflected on the attachment showed several double payments ranging from R1m to R7m, while the bulk of the overpayments, as stated by the RAF, ran into hundreds of thousands of rand.
“The duplicate payments made by the RAF into the various law firm’s trust accounts were made in respect of specific claims for the benefit of specific claimants.
“The aforesaid firms have failed to return the duplicate payments made, and it is apparent to the RAF that the firms have utilised the duplicate payments for purposes other than that for which the payment was received in trust,” the letter read
The RAF further stated that the utilisation of the money occurred without instructions or the consent of the claimant on whose behalf the payment was made.
It was also without the consent of the RAF.
According to the letter to the watchdog body, the law firms involved have resorted to a self-help approach in relation to monies paid in duplicate by the RAF.
“The self-help approach adopted by the attorneys amounts to unethical conduct/practices, that do not resonate with the spirit of the Legal Practice Council or the legal practitioner’s ethical codes.
“It is upon these grounds that the RAF seeks the intervention of the watchdog to institute a formal investigation into the conduct of all the firms mentioned on the list, as attached to this compliant,” the letter read.
Saturday Star