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More than 500 lawyers, accused of looting over R1.4 billion from their clients’ trust funds, are still sitting pretty, untouched by prosecution. That’s not a typo — that’s over R1.4 billion allegedly swiped, and the justice system seems to have hit the snooze button.
This little horror story was unearthed thanks to some cold, hard stats from the Legal Practice Fidelity Fund, The Citizen reports.
The numbers don’t lie: 561 trust fund theft cases. R1.4 billion allegedly vanished. And yet, only 59 convictions in seven years, with a measly 25 lawyers actually landing behind bars. The rest are probably polishing their golf swings as we speak.
Wayne Duvenage, the straight-talking CEO of corruption-busting outfit OUTA (Organisation Undoing Tax Abuse), noted how the National Prosecuting Authority (NPA) and the Legal Practice Council (LPC) are about as enthusiastic about trust fund theft cases as a cat is about bath time. And that’s a major red flag for anyone who still wants to believe the legal profession has a shred of integrity.
“A reason often given is that the NPA is stretched thin and lacks the forensic capacity to investigate these complex financial crimes, but this excuse must come to an end,” said Duvenage. “
A matter of more serious concern is that the LPC internal disciplinary actions are often opaque, and weak and complainants are rarely updated on outcomes.”
So, the watchdogs are either napping or barking at the wrong postman.
“There appears to be a lack of leadership and political will to address this matter. Theft or misconduct in the legal profession appears to be far more lenient compared to lower-level financial crimes. It would appear that regulators may be reluctant to aggressively pursue cases that could further erode public confidence in the legal system.”
Duvenage threw it back to the pre-2018 days, when provincial law societies — apparently the original gatekeepers — were about as effective as a chocolate teapot when it came to stopping trust fund abuse. Instead of cracking down on shady lawyers, these societies were often accused of giving them the five-star cover-up treatment.
“Even now, many former law society structures and personnel still influence current regulatory culture, slowing down the pace of reform,” he divulged. Duvenage said that until the LPC took a more aggressive stance and worked closely with the NPA, the South African Police Service and Treasury to criminally prosecute trust fund theft — and until Parliament held regulators accountable — the pattern would persist.
He added that a major overhaul of legal oversight and the urgent recapitalisation of the Fidelity Fund were long overdue.
Cue the defensive stance from the LPC. Spokesperson Kabelo Letebele insisted the delays weren’t on them, and that the LPC was actually doing its utmost to juggle the mountain of complaints.
Letebele laid out the numbers: over 1,000 complaints a month, more than 14,000 a year — and apparently 90% get wrapped up annually. Plus, in 2024 alone, over 150 bad apples got suspended or booted from the profession.
“The law restricts the role of the LPC in investigating complaints and initiating disciplinary processes. In other words, we investigate complaints of misconduct or subject a legal practitioner to an investigation and can subject them to a disciplinary hearing.
“Once our independent investigations committee and independent disciplinary committee have concluded their work, they recommend that the LPC should apply to court for a suspension or strike off. This recommendation, together with all the details on the matter, including evidence presented, is then considered by the council, which makes the final decision on the matter.”
And once a lawyer is struck off? Well, the LPC wipes its hands clean. If the cops or the NPA fancy pressing criminal charges, that’s their circus, not the LPC’s.
Meanwhile, Nkosana Mvundlela, president of the Law Society of South Africa, tried to put a more diplomatic spin on the mess.
“While the overwhelming majority of legal practitioners uphold the highest standards of ethics and professionalism, the conduct of a few continues to cast a shadow over the entire profession.
Sure, the numbers might be “small by proportion,” as Mvundlela puts it, given the roughly 6,000 candidate attorneys who enter the scene every year. But let’s be real, when people hand over their life savings, “one too many” is one too many.
And finally, the official government line. Terrence Manase, speaking for Minister of Justice and Constitutional Development Mmamoloko Kubayi, kept it polished and professional: the department’s watching, and they’re on it.
“We want to assure the public that decisive steps are being taken to strengthen accountability and restore trust.”
The question is: will “decisive steps” actually mean orange overalls for a few of these legal looters, or just another decade of paperwork?
[Source: The Citizen]
