Health Minister Aaron Motsoaledi has introduced a two-week amnesty period for lawyers to withdraw fraudulent medical negligence claims without facing prosecution. This move is part of a nationwide campaign to curb the exploitation of the state’s resources and protect patients from unethical legal practices.
The Treasury has raised alarms over the escalating budget impact of medical negligence payouts, which have increasingly strained the healthcare budget. In 2022/2023, provinces faced contingent liabilities exceeding R68 billion in medico-legal claims, representing 75% of the health budget. Payouts to successful claimants amounted to R1.45 billion.
Motsoaledi revealed that the ongoing Special Investigating Unit (SIU) probe, initiated in 2022, has already saved the state over R3.1 billion, with further savings expected as investigations continue. The Minister urged attorneys involved in fraudulent claims to take advantage of the amnesty offer, which expires after two weeks.
President Cyril Ramaphosa’s 2022 proclamation authorising the SIU to probe corruption, fraud, and maladministration related to medico-legal claims in the public health sector prompted the investigation. The inquiry uncovered significant fraud, particularly in the Eastern Cape and Gauteng, with Johannesburg-based Nonxuba Attorneys already facing criminal charges.
The SIU has uncovered fraudulent claims filed without the patients’ knowledge, embezzlement of settlement funds, and claims made on behalf of deceased individuals. The agency has been investigating 2,830 claims worth R33.13 billion, with 360 cases involving R19 billion already scrutinised.
Several attorneys have been referred to the National Prosecuting Agency for potential criminal charges and to the Legal Practice Council for breaches of professional conduct. The Legal Practitioners Fidelity Fund is also being urged to reimburse victims whose attorneys misappropriated their funds.
The SIU found that many claimants still depend on social grants despite large sums deposited into their lawyers’ accounts. This amnesty period is crucial in addressing the widespread fraud that has plagued South Africa’s public healthcare system and drained its financial resources.