Former Attorney Arrested for Alleged R10.5M Fraud Against RAF

A lawyer recently arrested for allegedly defrauding the Road Accident Fund (RAF) of R10.5 million had already been barred from practicing law since 2018 due to multiple complaints against him.

Michael Senotse Mabunda was arrested last week and is facing charges of corruption, fraud, and theft. The Legal Practice Council (LPC) confirmed that Mabunda was struck off the roll of attorneys on May 18, 2018, following a series of complaints that began as early as 2012.

The complaints against Mabunda included failure to pay trusts, neglecting client matters, overcharging, and failing to account for funds. A thorough financial investigation revealed significant irregularities in his firm’s accounting records, prompting his suspension and eventual removal from the legal profession.

The Hawks in Gauteng arrested Mabunda after an investigation uncovered that he had lodged claims with the RAF on behalf of clients, receiving R10,562,173.21 into his trust account but allegedly never transferring these funds to them. This led to substantial financial losses for the claimants. The case was initially registered at the Pretoria-North police station in August 2019.

Mabunda made his first court appearance in the Pretoria Specialised Commercial Crimes Court last Tuesday, with his case postponed until November 26 for further proceedings.

LPC spokesperson Kabelo Letebele emphasized that fraudulent activities would not be tolerated and that offenders would face legal consequences. Mabunda was admitted as an attorney on January 7, 2010, and practiced under the names Mabunda (Mike) Inc. Attorneys and later as part of Mabunda, Mamabolo Attorneys until his suspension in September 2017.

The LPC has advised clients who suffered financial losses due to Mabunda’s actions to lodge claims with the Legal Practitioners Fidelity Fund and to report the matter to the SAPS Commercial Division. Letebele also reminded the public to verify the status of legal practitioners before engaging their services, as practicing after being struck off is a criminal offense.

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