The Road Accident Fund (RAF) has claimed 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.

A Cape Times report says 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 11 October.

The complainant was involved in an accident as a passenger in a bakkie in April 2021. She was hospitalised for five weeks due to the severity of her injuries. She subsequently visited Masixole Bangiso Attorneys for an RAF claim.

He made an application for an amount of R550 000 to the RAF. In June 2023, the complainant alleged she was told the payment of her claim would be made by December 2023. Bangiso allegedly confirmed payment to his trust account by the RAF in January 2024 but failed to transfer the funds to his client and kept on giving excuses.

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.

He said from 2020 to 2023, the RAF successfully stopped fraudulent claims worth over R2.6bn.

Full Cape Times report