The use of touts in hospitals to 'originate' RAF claims was profitable for attorneys, who raked in about R2bn in legal fees last year, says a Cape Times report.
And the RAF paid out R478m to advocates during the same period. In 2001, legal fees paid to attorneys by the RAF was a fraction of the current amount of R345m. The RAF had taken steps to minimise these costs by encouraging victims of car crashes to claim directly from the fund, said Transport Minister Dipuo Peters. According to the report, FF Plus MP Anton Alberts had asked Peters if it wouldn't constitute a conflict of interests if the RAF settled claims directly with the public without the backing of independent advisers. 'How does the RAF justify its practice of approaching patients directly in hospital and advising them on the prospects of a claim and discouraging them from claiming or making use of an attorney,' Alberts reportedly asked. Peters said the situation would not constitute a conflict of interests. Full Cape Times report (subscription needed)