Johannesburg – The Special Investigating Unit (SIU) probe into medico-legal claims made against the Department of Health across the country has revealed that 23 Letters of Demand from lawyers amounting to R271.8 million were fraudulent.
The SIU probe involved interviewing the claimants, who revealed that they had never visited any of the health facilities that were being litigated against, and indeed no records of these patients were found in those facilities.
The lawyers were demanding a total of R298 million.
“Notably, all these letters were submitted by a single law firm, but we are unable to mention the name because they have not yet been charged in a court of law,” explained Head of the SIU Advocate Andy Mothibi at a press briefing on Saturday.
“These fraudulent claims were successfully removed from the contingent liability register of the Eastern Cape Department of Health saving them money.
“There are 35 additional matters valued at about R600 million, currently under investigation, initiated by Nonxuba Attorneys Inc. in which no Trusts were registered as per the court orders.”
The SIU said it made 45 referrals of attorneys to the National Prosecuting Authority, amounting to R279.5 million, for consideration of criminal charges related to fraud, theft, embezzlement of trust funds, and contempt of court against certain legal firms, including Nonxuba.
“Again we are unable to name the other legal firms because they have not as yet been charged,” Advocate Mothibi said.
“The same attorneys were also referred to Legal Practice Council for violation of the Code of Conduct for Legal Practitioners, and the Legal Practitioners Fidelity Fund to consider reimbursing claimants whose funds were embezzled by their legal representatives.”
The SIU said it has identified numerous cases in the Eastern Cape, where the living conditions of the claimants and their children remain appalling, despite receiving compensation from the department, which money has been paid to their lawyers.
“Many of these claimants are unemployed and rely on social grants from SASSA for their livelihood despite millions having been deposited into their lawyers’ accounts,” said Advocate Mothibi.
“Some households are constrained to a single-room ‘rondavel’ without appropriate railing or ramps to assist disabled children, resulting in inadequate living conditions and insufficient caregiving, despite the fact that in the claims, money has been paid for these types of facilities.
“Furthermore, the SIU said it found that these children continue to place a burden on the already strained public healthcare system, whereas, in the claims in court, the lawyer cited future healthcare based on fees charged in private hospitals.”
The SIU said one notable instance involves cases where the Department paid R373 850 748.04 to Nonxuba Inc. for 22 claims between 2018 and 2021.
“However, several years later, an inspection by the SIU revealed that none of the claimants had Trust Accounts registered in their names as ordered by the courts, and their living conditions were found to be deplorable and impoverished,” Advocate Mothibi said.
“This means that Nonxuba Attorneys have pocketed all the money for themselves.”
This matter is already before the court.
