A Zimbabwean lawyer accused of fraud involving Road Accident Fund (RAF) compensation claims and the alleged theft of money intended for clients has been denied bail in a case involving potential financial losses of more than R20 million.
Precious Muleya, director of Precious Muleya Attorneys, appeared in the KuGompo Magistrate’s Court on Friday, October 23, where her bail application was unsuccessful.
The Eastern Cape head of the Directorate for Priority Crime Investigation (Hawks), Major General Mboiki Obed Ngwenya, welcomed the court’s decision.
Muleya faces allegations of fraud and theft relating to compensation claims lodged with the RAF on behalf of road accident victims and funds allegedly misappropriated from beneficiaries.
Alleged R20 million RAF fraud
According to the Hawks, the investigation centres on compensation claims submitted to the RAF on behalf of approximately 28 people who had reportedly been involved in road accidents.
It is alleged that between October 24, 2011, and January 19, 2024, certain claims contained material misrepresentations that inflated the amounts claimed beyond the compensation to which the beneficiaries were entitled.
Investigators further allege that after some claims were processed and payments made, the funds were not transferred to the intended beneficiaries but were instead retained and misappropriated by the accused.
The alleged irregularities came to light after the RAF identified discrepancies in certain claims, resulting in some applications being rejected.
The findings prompted further scrutiny and the subsequent referral of the matter to the Hawks for criminal investigation.
The Hawks said the complainants had suffered actual financial prejudice exceeding R5.2 million, while the potential financial prejudice linked to the broader allegations was estimated at more than R20 million.
Arrested at OR Tambo International Airport
Muleya was arrested by the Hawks’ Tactical Operations Management Section at OR Tambo International Airport on September 30, 2026.
Her arrest followed the issuing of a warrant in connection with cases registered in KuGompo City.
The Hawks’ Serious Commercial Crime Investigation unit in KuGompo conducted the investigation into the alleged financial misconduct.
The case involves allegations concerning both the submission of RAF compensation claims and the handling of money entrusted to Muleya’s legal practice for the benefit of clients.
Lawyer to remain in custody
Muleya’s bail application was dismissed by the KuGompo Magistrate’s Court on Friday.
The matter was postponed to November 11, 2026, for transfer to the KuGompo Commercial Crimes Court for further proceedings.
She will remain in custody until her next court appearance.
The allegations against Muleya have yet to be tested in court.
sinenhlanhla.masilela@iol.co.za
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