Hawks nab attorney over alleged R3.2 million RAF payout scam

The Hawks have arrested a 51-year-old Eastern Cape attorney for allegedly pocketing more than R3.2 million in Road Accident Fund (RAF) compensation intended for clients, after a complainant reportedly discovered that money she had been told was still pending had actually been paid years earlier.

Members of the KuGompo Serious Commercial Crime Investigation unit of the Directorate for Priority Crime Investigation (Hawks) arrested Vuyisile Magqabi on Monday, who made a brief appearance in the KuGompo Magistrate’s Court the same day.

He faces a theft charge related to RAF compensation allegedly entrusted to his law firm for its clients’ benefit.

Compensation claim

According to Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana, the case stems from a compensation claim lodged through Magqabi Attorneys following a motor vehicle accident involving a complainant and her daughter on the N2 between Makhanda and Peddie.

“The RAF processed the claim and paid the compensation into the law firm’s trust account between 2020 and 2022,” Mhlakuvana said.

Despite the payment, the complainant reportedly continued to enquire about the status of the claim and was allegedly told by the attorney that the matter was still under consideration.

Concern

Growing concerned by the delay, the complainant later approached the RAF directly to establish the status of the compensation claim.

“During this enquiry, she allegedly discovered that payment had already been made into the law firm’s trust account in 2022,” said Mhlakuvana.

The discovery triggered further enquiries and the matter was subsequently referred to the Hawks for criminal investigation.

Investigation

Mhlakuvana said a thorough Hawks investigation allegedly established that an amount exceeding R3.2 million was paid into the law firm’s trust account in connection with the compensation claim.

According to the investigation, the complainants allegedly received only about R1.4 million of the compensation, while the remainder was allegedly misappropriated.

“Further investigative findings reportedly revealed that the complainants received only approximately R1.4 million, while the remaining amount was allegedly misappropriated for the benefit of the accused,” Mhlakuvana said.

Bail

Following the investigation, Magqabi was arrested and charged with theft.

The attorney was granted bail of R10,000, and the case was postponed to 10 November 2026 for transfer to the KuGompo Commercial Crimes Court.