Fidelity guarantee fund ordered to pay RAF claimant

The Legal Practitioners Fidelity Fund has been ordered by the High Court in Pretoria to pay a 54-year-old widow living in an informal human settlement in Orange Farm, Johannesburg, her Road Accident Fund (RAF) payout that was stolen by her attorneys.

- Roy Cokayne

The fund, established in terms of the Legal Practice Act, exists to protect the public against losses arising from the theft of trust funds.

Lindiwe Busangani Nkosi claimed compensation from the fund in terms of the Act, because the compensation she received from the RAF for injuries sustained in a motor vehicle accident on 29 July, 2015, was stolen by her former attorneys, Chueu Inc Attorneys.

The court was informed that Chueu Inc Attorneys was hopelessly insolvent and the Legal Practice Council (LPC) confirmed in an email dated 13 February, last year, that the firm is under curatorship and owes the LPC R29 million.

The fund’s Jerome Losper said in an answering affidavit it has received 116 claims relating to Chueu Attorneys, to the value of R82 721 575.48.