A KuGompo City lawyer has been arrested for allegedly misappropriating R1.8m in Road Accident Fund (RAF) compensation meant for his clients.
Vuyisile Magqabi, 51, was arrested by the Hawks on Monday and appeared in the magistrate’s court, where he was granted R10,000 bail. His case was postponed to November 10 and will be heard in the commercial crimes court.
Magqabi drew national attention for representing, pro bono, the families of the 21 young people who died at the Enyobeni tavern in Scenery Park in 2022 during the inquest into their deaths.
The inquest subsequently found that Siyakhangela and Vuyokazi Ndevu had failed to enforce liquor regulations. Its findings were sent to the National Prosecuting Authority (NPA) to determine whether criminal charges should be brought.
But on Monday, Magqabi found himself on the wrong side of the courtroom facing allegations of financial misconduct.
Provincial Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana confirmed the arrest, saying the KuGompo Serious Commercial Crime Investigation unit of the Directorate for Priority Crime Investigation was investigating the alleged misappropriation of RAF compensation.
“The case stems from a compensation claim reportedly lodged by a complainant through Magqabi Attorneys following a motor vehicle accident involving the complainant and her daughter on the N2 highway between Makhanda and Peddie,” Mhlakuvana said.
“The circumstances surrounding the accident subsequently gave rise to a claim for compensation from RAF.
“According to the allegations, the RAF processed the claim and paid the compensation into the law firm’s trust account between 2020 and 2022.
“Despite the payment, the complainant reportedly continued to enquire about the status of her claim and was allegedly informed by the accused that the matter was still under consideration.”
According to the Hawks, the complainant became concerned about the delay and approached the RAF board to establish the status of her claim.
It was during this enquiry that she discovered R3.2m compensation had already been paid into Magqabi Attorneys’ trust account in 2022.
The client reportedly pursued legal action against the attorney, including submitting a complaint to the Legal Practice Council. A total of R1.4m was subsequently paid out to the client.
The difference of about R1.8m is now the subject of the case for which Magqabi appeared in court on Monday.
Magqabi’s arrest adds to a series of cases involving allegations that lawyers misappropriated RAF compensation intended for clients. His is the third such matter to feature on the city’s court roll this week, following cases placed on the roll since last week.