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A Zimbabwean lawyer has been arrested in connection with allegations of fraud and theft of Road Accident Fund (RAF) trust funds, with complainants suffering more than R5.2 million in alleged financial prejudice and potential losses in the broader case estimated at more than R20 million, the Hawks said.
Precious Muleya, director of Precious Muleya Attorneys, was arrested on September 30 at OR Tambo International Airport.
The arrest followed a warrant issued in connection with cases opened at KuGompo City, in the Eastern Cape.
Claims involving about 28 people
Eastern Cape Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana said the investigation relates to claims submitted through Muleya’s legal practice on behalf of about 28 people who were reportedly involved in road accidents.
The alleged conduct occurred between October 24, 2011, and January 19, 2024.
According to the Hawks, some of the claims contained material misrepresentations that allegedly inflated the value of compensation claims beyond the amounts to which the claimants would have been entitled.
“It is further alleged that compensation funds were subsequently paid in respect of some of the claims,” Mhlakuvana said.
Alleged misuse of compensation funds
The Hawks allege that, instead of transferring the compensation funds to the beneficiaries on whose behalf the claims were pursued, the money was retained and appropriated by Muleya.
“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 Road Accident Fund identified discrepancies in some of the claims, resulting in their repudiation, and the matter was subsequently referred to the Hawks for further investigation.
More than R5.2 million in alleged prejudice
The investigation has so far established that complainants suffered actual financial prejudice of more than R5.2 million, according to the Hawks.
Potential financial prejudice linked to the broader allegations is estimated at more than R20 million.
The allegations have not been proven in court, and Muleya is presumed innocent unless and until proven guilty.
Court appearance
Muleya briefly appeared before the Kempton Park Magistrate’s Court on Thursday, October 1.
She is expected to be transported to the Eastern Cape and appear before the KuGompo Magistrates’ Court on Monday, October 5.
Hawks commend investigation
Meanwhile, Eastern Cape provincial head of the Hawks, Major General Mboiki Obed Ngwenya, praised the multidisciplinary approach to the investigation, which brought together relevant stakeholders to advance the case.
simon.majadibodu@iol.co.za
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