SIU recovers R18 million linked to RAF investigation

The Special Investigating Unit (SIU) has revealed that it has recovered R18 million to date linked to Road Accident Fund (RAF) affairs through an acknowledgement of debt process.

Proclamation

The investigating unit explained in a statement on Monday that the recovery of the funds comes after the signing of Proclamation R44 of 2021 by President Cyril Ramaphosa, which has authorised the SIU to investigate serious allegations of corruption and maladministration in the affairs of the RAF.

“The SIU has signed acknowledgments of debt with law firms and attorneys to the value of approximately R 68 million, which constitute unlawful acts of appropriation. The firms received duplicate payments from the RAF as compensation to persons injured because of motor vehicle accidents on South African roads.”

“Instead of returning the duplicate payments to RAF, legal practitioners opted to either keep the money in their Trust accounts or use it to their personal benefit. The Proclamation authorises the SIU to investigate compensation payments made by RAF to claimants or claimants’ agents, payments made by RAF in a manner that is contrary to the applicable legislations, and to recover financial losses suffered by the State or RAF,” the statement reads.

READ MORE: SIU recovers R33M from Northlink College in misused NSFAS funds

Phases

The SIU also explained that as part of phase one of four of the investigation, it is looking at 102 law firms which received duplicate payments from the RAF, amounting to approximately R340 060 277, 97.

Additionally, when approached with the evidence, several legal practitioners opted to co-operate with the SIU investigation by the signing of acknowledgments of debt.

Co-operation

“The SIU signs acknowledgements of debt with individuals and companies that are subject to SIU investigations, committing to pay back undue financial benefit with interest over an agreed period. Furthermore, the SIU is closely working with the Legal Practice Council on the RAF investigation and other law enforcement agencies where the need arises for active collaboration to ensure effective implementation of SIU investigation outcomes and consequence management.”

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