The Special Investigating Unit (SIU) is investigating 102 Law firms- including the Sheriffs, which received
duplicate payments from the Road Accident Fund (RAF) of approximately R340 million and has recovered
approximately R18 million. The SIU was presenting its preliminary findings to Parliament’s Standing
Committee on Public Accounts (SCOPA) on Wednesday, 19 April 2023.

The SIU has approached several legal practitioners with the evidence, and they have opted to cooperate with the SIU investigation in defrayal of their indebtedness by the signing of acknowledgments of debt (AoD). To date, the SIU has signed the AoDs to the value of R 68 000 000. The signing of AODs does not absolve the legal practitioners from any civil litigation that the SIU may institute or refer for criminal prosecution or being reported to a regulatory body, in this case, the Legal Practice Counsel.

So far, the SIU has made one referral to the National Prosecuting Authority (NPA) for evidence pointing to
criminal conduct. There are 10 possible NPA referrals identified and five possible referrals to the Legal Practice Counsel.

Furthermore, the SIU is investigating 10 contracts for possible irregularities, fruitless and wasteful expenditure. Some of the contracts were flagged by the Auditor General. Four contracts to the value of
approximately R837 million have been identified for review and possible cancellation.

The SIU is in terms of Proclamation R44 of 2021 authorised to investigate allegations of corruption and
maladministration in the affairs of RAF, and to recover any financial losses suffered by the State.

The investigation has five focus areas:

• Focus Area 1: The focus in this area looks at duplicate claim payments made to Attorneys, Claimants
  and Sheriffs and change of mandates.
• Focus Area 2: This area focuses on procurement and tender irregularities, especially fruitless and
  wasteful expenditure.
• Focus Area 3: The area zooms into RAF payment claims from service providers who have rendered
  services to the victims of the motor vehicle accident.
• Focus Area 4: Focuses on possible inflated invoices submitted by the service providers, either by way
  of contract or the act. The investigation also focuses on possible collusion between the RAF employees and the services providers, and the bill of cost submitted by the attorneys.
• Focus Area 5: This area focuses on fraudulent Claims- both foreign and national- and home
  modifications across the country as well as rejected claims.

The SIU is empowered to institute civil action in the High Court or a Special Tribunal in its name, to correct any wrongdoing uncovered during both investigations caused by acts of corruption, fraud, or
maladministration. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any evidence pointing to criminal conduct it uncovers to the NPA for further action.

Enquiries: Mr Kaizer Kganyago
Chief Stakeholder Relations and Communications (SIU)
012 843 0048 / 082 306 8888
kkganyago@siu.org.za