Zim Lawyer Arrested Over R5.2 Million Road Accident Fund Scandal in South Africa
Zim Lawyer Arrested Over R5.2 Million Road Accident Fund Scandal in South Africa
Lawyer inflated compensation claims
A Zimbabwean lawyer has been arrested in South Africa for allegedly defrauding the Road Accident Fund (RAF) of more than R5.2 million (approx. US$312,000).
Precious Muleya, director of Precious Muleya Attorneys, was arrested on September 30 at OR Tambo International Airport on a warrant issued in the Eastern Cape. The case involves alleged fraud and theft of RAF trust funds, with total potential losses estimated at over R20 million (approx. US$1.2 million).
According to Eastern Cape Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana, the investigation centres on claims submitted through Muleya’s practice on behalf of about 28 road accident victims between 24 October 2011 and 19 January 2024.
The Hawks allege that some claims contained material misrepresentations that inflated the compensation due to claimants.
“It is further alleged that compensation funds were subsequently paid in respect of some of the claims,” Mhlakuvana said.
Beyond the alleged submission of fraudulent claims, Muleya is accused of unlawfully appropriating the compensation.
Instead of transferring the payouts to the beneficiaries, she allegedly retained the money for herself.
“The scrutiny therefore extends beyond the alleged submission of fraudulent claims and includes allegations concerning the unlawful appropriation of compensation funds entrusted to a legal practitioner for the benefit of clients,” Mhlakuvana said.
The RAF reportedly picked up discrepancies in the claims, repudiated some of them, and referred the matter to the Hawks.
So far, investigators have established actual financial prejudice of more than R5.2 million (approx. US$312,000) suffered by complainants, with potential prejudice across all 28 claims estimated at over R20 million (approx. US$1.2 million).
The allegations have not been proven in court. Muleya remains presumed innocent until proven guilty.
Muleya appeared briefly before the Kempton Park Magistrate’s Court on Thursday, 1 October. She is expected to be transferred to the Eastern Cape to appear before the KuGompo Magistrates’ Court on Monday, 5 October.
Eastern Cape Hawks head Major General Mboiki Obed Ngwenya commended the multidisciplinary approach that led to the arrest.