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Service Providers Assisting Departments of Health Filing Fraudulent Medico-Legal Claims

Dear Editor

The DA welcomes the Legal Practice Council’s (LPC) investigation into the legal firm that brokered a deal which saw an 11-year-old boy allegedly robbed of half his medical negligence payout.

Sfundo Phiwayinkosi Hlongwane’s mishandled birth resulted in brain damage and cerebral palsy. Although he won a R9.3 million settlement from the KwaZulu-Natal Department of Health, he only received R4.9 million of it. The rest of the settlement – R4.4 million – was allegedly embezzled by his legal team.

Unfortunately, Sfundo is one of many victims that have fallen victim to unscrupulous law firms over the years. Recent written parliamentary questions by the DA have revealed that the more than R175 million the Department paid two service providers to assist the provinces with the handling of medico-legal cases was not enough. The service provider that assisted the Eastern Cape, Northern Cape, and KwaZulu-Natal with more 706 claims worth more than R10 billion, has submitted 51 potentially fraudulent claims.

The service provider that assisted Gauteng, Mpumalanga, and Limpopo with 1 324 claims worth more than R10 billion filed 4 potentially fraudulent claims.

And a third service provider meant to conduct forensic investigations on law firms litigating against the Department submitted 3 potentially fraudulent claims.

Furthermore, the case management system the Department paid more than R1.8 million for has been rolled out in five Provinces but is only being used by KwaZulu-Natal and the Free State.

As of 23 September, there were 9 721 active medico-legal cases before courts with a contingent liability of more than R108 billion.

Given the avalanche of medico-legal claims against the provinces, it is very concerning that the Department’s case management is not being utilised by the province and that they have contracted service providers that appear to be part of the feeding frenzy.

Fraudulent claims and unscrupulous legal practitioners are not only harming the public health sector and hampering the provision of health care, they are also causing great harm to victims like Sfundo who need the funds for further medical care.

The DA will use every available avenue within Parliament and outside to ensure accountability.

Regards

Michele Clarke
DA Spokesperson on Health

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