The Road Accident Fund (RAF) claims the arrest of an Eastern Cape lawyer who allegedly stole claimants’ money in his trust fund was indicative of a larger problem of fraud and corruption.
East London-based Masixole Bangiso from Masixole Bangiso Attorneys appeared in the East London Magistrate’s Court on Monday and was released on bail.
The matter was postponed to October 11.
Detailing the history of the case, Hawks provincial spokesperson Yolisa Mgolodela said the complainant was involved in an accident as a passenger in a bakkie in April 2021 at Fitzpatrick Road
“She was rushed to Frere Hospital in an ambulance where she was hospitalised for five weeks due to the severity of her injuries.
“Upon discharge, she reportedly visited Masixole Bangiso Attorneys for an RAF claim.
“The complainant was taken by Bangiso to a specialist to prove the severity of her injuries.
“He made an application for an amount of R550 000 to the RAF, which according to the complainant, Bangiso deemed a reasonable offer for the damages,” Mgolodela said.
In June 2023, the complainant alleged she was told the payment of her claim would be made by December 2023.
It is further alleged that on January 3, 2024, the complainant called Bangiso to check on the progress of the claim payment as she lost her brother and needed funds for funeral preparations.
Bangiso allegedly confirmed payment to his trust account by the RAF but failed to transfer the funds to his client and kept on giving excuses.
“The complainant approached the legal counsel for assistance where it was confirmed that the claim amount of R550 000 was indeed paid to Masixole Bangiso Trust Account on January 3, 2024,” Mgolodela said.
It is alleged that Bangiso, after being consulted by the legal counsel, paid the client an amount of R500,000 which investigations by the Hawks confirmed was a claim paid out by the RAF to another client of Bangiso. “The RAF was prejudiced by cash to the value of more than R1 million during these two transactions, hence Bangiso’s arrest.”
RAF spokesperson McIntosh Polela said the practice preferred by attorneys which entails issuing of summons and dragging out claims unnecessarily beyond the 120 days enables legal practitioners to line their pockets as long as possible from administrative and legal costs.
“Through the Road Accident Fund Amendment Bill 2023, the fund proposes doing away with attorneys when victims of motor vehicle accidents lodge their claims with the RAF.
“This is due in part to the many problems visited by attorneys upon the fund over the decades, which have at some point contributed to the near collapse of the RAF,” said Polela.
From 2020 to 2023, the RAF successfully stopped fraudulent claims worth over R2.6 billion, he said.
Legal Practice Council Eastern Cape director Alfred Hona said they would liaise with the Hawks to get more information for purposes of determining the next cause of action in line with the organisation’s disciplinary process.
Cape Times