The Department of Health paid R2.7 billion in medical-related legal claims last year. In 2013, it was only R265 million, the Special Investigating Unit (SIU) told the standing committee on public accounts (Scopa). SIU head, Advocate Andy Mothibi, revealed evidence of collusion between lawyers, touts, nurses, and doctors in public and private healthcare.
Some law firms withdrew claims after SIU investigations began, stopping about R3 billion in fraudulent claims. Investigations target cases involving children born with cerebral palsy, false malpractice claims, and conspiracy to access private medical records to file claims unlawfully.
SIU investigations target cases involving children born with cerebral palsy
Mothibi highlighted a case where two attorneys filed identical claims for the same patient in different courts, asking for R7.5 million and R25 million. The SIU has also uncovered cases where agents impersonated South African Social Security Agency officials to get powers of attorney under false pretences.
In the Eastern Cape, nine claims were identical
One fraudulent claim sought R70 million for a botched circumcision, which never occurred. Since 2017, the SIU has focused on provinces with the highest medical-legal claims. In the Eastern Cape, claims from a Johannesburg-based firm, Nonxuba Attorneys, totalled R497 million. Nine of their claims for cerebral palsy cases were identical, raising suspicion of fraud.
The firm’s owner, Zuko Nonxuba, has been suspended from legal practice.
In the Eastern Cape High Court, claims surged from 46 to 529 between 2010 and 2016; collusion between officials led to unauthorised settlements. Members of Parliament called for action against implicated law firms and questioned why the Health Department didn’t investigate before paying out these fraudulent claims.