Malawi judges in syndicate, says insurance association

Judges have ganged up with lawyers, medical personnel and security officers in a syndicate that is robbing the Malawi insurance industry millions of kwacha in fraudulent claims, insurers have said.

This is the first time the Insurance Association of Malawi has specifically mentioned judges as being part of the ring.

Last week, the association said lawyers constitute a critical component of the fraud.

But the Judiciary says the parties involved need to resolve their differences through dialogue.

Former president of association Eric Chapola, who is also general manager of NICO General Insurance Company, said in an interview on Wednesday that the insurance industry has been complaining about the tendency of lawyers to collude with police officers, judges and medical practitioners to make false claims.

Chapola was president of the association when the body first raised the issue in 2011.

“But what we see is the lawyer getting in league with a policeman, getting in league with medical practitioners and with a judge and then bang! comes a big judgement like say pay K25 million and before we argue sheriffs are at NICO General uprooting computers,” said Chapola.

He said since 2011, the association has been writing the Chief Justice regarding the fraudulent activities of lawyers, but nothing has happened to deal with the problem.

Some of the accusations are: two law firms representing one client; law firms commencing a claim without being instructed by the victims; lawyers conniving with judges to make rulings on huge claims; lawyers conniving with police officers to produce fake police reports implicating innocent people [drivers] to have admitted wrong doing and make huge claims and lawyers conniving with hospital personnel to produce fake accidents reports to make claims.

A letter dated January 18 2012 to the Chief Justice reads in part: “Our association would like to know what measures are being taken on lawyers who are representing accident Investigation Bureaux, i.e. accident chasers.”

The letter raised 12 points that needed the attention of the Chief Justice that included regulating the lawyers who represent accident victims by registering with the Registrar of Insurance.

But in an interview last week, Judiciary spokesperson Joseph Chigona called for roundtable discussions between the association, Malawi Law Society and the Judiciary to resolve the differences.

Chigona said the Judiciary discussed the matter with MLS and resolved to meet the insurance association.

“We will call for a meeting to discuss this issue,” he said.

MLS executive secretary Felisah Kilembe said the society is committed to dealing with reports of professional malpractice among lawyers.

But Kilembe cautioned the insurance body against making corruption allegations against the Judiciary without presenting evidence to support the claims.

“The independence of the Judiciary is a cornerstone of a democratic society. As such, any allegations of inappropriate behaviour on the part of judicial officers ought to be treated with deserved seriousness,” she said.