A Zimbabwean lawyer accused of defrauding the Road Accident Fund and allegedly withholding money intended for clients has been denied bail in a case involving potential financial losses of more than R20 million.
Precious Muleya, the director of Precious Muleya Attorneys, appeared in the KuGompo Magistrate’s Court on Friday, 23 October 2026. Her bail application was unsuccessful.
The Hawks welcomed the court’s decision. Muleya faces allegations of fraud and theft linked to compensation claims submitted to the RAF on behalf of road-accident victims and the alleged misappropriation of funds paid to beneficiaries.
The allegations have not been tested in court. Muleya is presumed innocent until proven guilty.
The matter was postponed to 11 November 2026 for transfer to the KuGompo Commercial Crimes Court. Muleya will remain in custody until her next appearance.
Alleged irregularities in 28 RAF claims
According to the Directorate for Priority Crime Investigation, the case centres on compensation claims submitted to the RAF on behalf of approximately 28 people who were reportedly involved in road accidents.
The Hawks allege that some of the claims contained material misrepresentations that inflated the amounts being claimed beyond the compensation to which the beneficiaries were entitled.
The alleged conduct is said to have taken place between 24 October 2011 and 19 January 2024.
Investigators further allege that after some of the claims were processed and payments made, the funds were not transferred to the intended beneficiaries. Instead, the money was allegedly retained and misappropriated by the accused.
The claims involved compensation intended for people who had suffered losses in road accidents. If proven, the allegations could mean that beneficiaries were deprived of money awarded to them through the RAF claims process.
The Hawks have not indicated in the supplied information how many claims were paid, how much was allegedly retained in each case or how the claimed losses were calculated.
RAF identified discrepancies
The alleged irregularities came to light after the RAF identified discrepancies in certain claims. Some applications were subsequently rejected, prompting further scrutiny.
The findings were referred to the Hawks for criminal investigation by the Serious Commercial Crime Investigation unit in KuGompo.
The investigation concerns both the alleged submission of inaccurate or inflated RAF claims and the handling of money entrusted to Muleya’s legal practice for the benefit of clients.
The Hawks said complainants had suffered actual financial prejudice exceeding R5.2 million. The potential financial prejudice linked to the broader allegations was estimated at more than R20 million.
The distinction between actual and potential prejudice is significant. The actual figure refers to losses investigators say have already been identified, while the larger potential figure relates to the wider allegations still being investigated or assessed.
Those figures remain allegations until they are tested through the criminal-justice process.
Arrest at OR Tambo Airport
Muleya was arrested by the Hawks’ Tactical Operations Management Section at OR Tambo International Airport on 30 September 2026.
Her arrest followed the issuing of a warrant in connection with cases registered in KuGompo City.
The Serious Commercial Crime Investigation unit in KuGompo conducted the investigation into the alleged financial misconduct.
The arrest at the airport brought the lawyer into custody while investigators continued working through the RAF claims and the money allegedly paid to beneficiaries.
The Hawks have not disclosed where Muleya had been travelling from or to at the time of her arrest, nor have they provided details of the warrant beyond its connection to the cases under investigation.
Bail application dismissed
Muleya’s bail application was dismissed by the KuGompo Magistrate’s Court on Friday.
The supplied information does not provide the full reasons for the court’s decision. Bail rulings can take into account issues such as the seriousness of the charges, the strength of the preliminary case, the risk of absconding, possible interference with witnesses or evidence, and the interests of justice.
The refusal of bail is not a finding that Muleya committed the alleged offences. It means that she will remain in custody while the case moves to the next stage.
Her matter was postponed to 11 November for transfer to the KuGompo Commercial Crimes Court, which is expected to handle the further proceedings.
The transfer will allow the case to proceed in a court that deals with complex commercial-crime matters. It does not determine the outcome of the trial.
Clients at centre of investigation
At the heart of the case are allegations that money intended for road-accident victims was not paid over after RAF claims were processed.
Lawyers handling compensation claims often receive or administer funds on behalf of clients, making accurate claim information and proper accounting essential. Any dispute about the amount awarded, deductions, legal fees or the transfer of funds must be resolved through the evidence and the applicable legal rules.
The Hawks allege that the conduct in this case went beyond administrative errors and involved fraudulent misrepresentations and theft. Muleya will have the opportunity to challenge those allegations through the court process.
The investigation may involve RAF records, claim forms, medical and accident documentation, payment records, client instructions, legal-practice accounts and communications between the firm and the beneficiaries.
Those records will be important in establishing what was claimed, what the RAF paid, who was entitled to the money and what happened to the funds after payment.
Hawks welcome court decision
Eastern Cape Hawks head Major General Mboiki Obed Ngwenya welcomed the dismissal of the bail application.
The Hawks’ position is that the investigation concerns serious alleged commercial crimes involving vulnerable road-accident beneficiaries and potentially substantial financial prejudice.
The case will now move towards the Commercial Crimes Court, where the prosecution will be required to present the evidence supporting the fraud and theft charges.
Muleya remains entitled to legal representation and the presumption of innocence. The State will ultimately have to prove each charge beyond a reasonable doubt.
At the latest update, she remained in custody, the alleged actual financial prejudice exceeded R5.2 million, the potential broader prejudice was estimated at more than R20 million and the case was postponed to 11 November 2026.