Written by SAT – International | Published on 9 June 2025 | MSN
Gert Nel, CEO of Gert Nel Incorporated, has dismissed claims by suspended Road Accident Fund (RAF) CEO Collins Letsoalo that his law firm irregularly benefited from the fund, calling the allegations “baseless.”
Letsoalo, currently suspended amid an investigation into the RAF’s affairs, previously accused Nel’s firm of pocketing over R2.2 billion from the fund over five years, suggesting the firm took excessive fees from settlements meant for accident victims.
In an interview, Nel refuted the figures, stating Letsoalo’s calculations were flawed. “He incorrectly assumes we charge 25% of every settlement, which is not how contingency fees work,” Nel said. He emphasized that his firm’s fees are strictly regulated under the Contingency Fees Act and subject to court scrutiny.
Contingency Fees Explained
Nel clarified that contingency fees—payable only if a case succeeds—are capped at 25% of the settlement but require detailed billing to justify costs. “We don’t simply take a quarter of the payout. Every fee is accounted for,” he said, adding that his firm has never faced complaints from the RAF’s forensic unit.
Letsoalo’s Motives Questioned
Nel suggested Letsoalo’s targeting of his firm stemmed from its vocal criticism of RAF policies. “We called out unlawful practices, like his disputed accounting standards that delayed victim payouts,” Nel said. He denied any campaign against Letsoalo but acknowledged challenging decisions harming claimants.
Dispute Over Earnings
While Letsoalo cited the R2.2 billion figure, Nel disputed the amount but acknowledged his firm was listed among the RAF’s top-paid legal service providers, earning approximately R80 million over the period—a figure he attributed to handling thousands of cases.
Focus on Victims
Nel urged the public to focus on systemic issues at the RAF, including delayed claims and restricted court access. “The real scandal is that victims aren’t being paid, not what attorneys earn,” he said.
The RAF and Letsoalo have yet to respond to Nel’s rebuttal. Meanwhile, the Special Investigating Unit (SIU) continues probing the fund’s affairs.