Alleged RAF scheme: Zimbabwean lawyer arrested after 28 claims tied to R5.2m prejudice

A Zimbabwean lawyer has been arrested after authorities linked about 28 Road Accident Fund (RAF) claims to more than R5.2 million in alleged financial prejudice, the Hawks said. The investigation also estimates potential financial prejudice linked to the broader allegations at more than R20 million.

Arrest followed warrant and RAF scrutiny

Eastern Cape Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana said the arrest of Precious Muleya, director of Precious Muleya Attorneys, took place 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 for about 28 people under investigation

Mhlakuvana said the probe relates to claims submitted through Muleya’s legal practice on behalf of about 28 people who were reportedly involved in road accidents. The Hawks say the alleged conduct occurred between October 24, 2011, and January 19, 2024.

Allegations of inflated claims and misappropriated funds

The Hawks allege some claims contained material misrepresentations that inflated compensation values beyond what the claimants would have been entitled to, and that compensation funds were subsequently paid on some of those claims.

The investigation further alleges 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. Mhlakuvana said the scrutiny extends beyond the submission of allegedly fraudulent claims to include allegations concerning the unlawful appropriation of compensation funds entrusted to a legal practitioner for the benefit of clients.

RAF repudiation and Hawks referral

The Road Accident Fund identified discrepancies in some of the claims, which led to their repudiation, and the matter was referred to the Hawks for further investigation.

Scale of the alleged prejudice

According to the Hawks, the investigation has so far established that complainants suffered actual financial prejudice of more than R5.2 million. The Hawks said potential financial prejudice linked to the broader allegations is estimated at more than R20 million. The allegations have not been proven in court; Muleya is presumed innocent unless and until proven guilty.

Court appearances and next steps

Muleya briefly appeared before the Kempton Park Magistrate’s Court on October 1. She is expected to be transported to the Eastern Cape and appear before the KuGompo Magistrates’ Court on October 5.

Hawks commend multidisciplinary probe

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.

“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,”

The Hawks provided the information used in this report.