Calls for swift action over widespread trust fund theft

The Law Society of South Africa (LSSA), which has expressed 'deep concern' over media reports that widespread trust fund theft, totalling over R1.4bn ($654 909 495) is not being prosecuted, has called for swift action against rogue lawyers and transparency on the matter, notes Legalbrief. According to The Independent on Saturday, the theft by legal practitioners is going largely unpunished due to the fragmented oversight and lack of co-ordination between key regulatory and prosecutorial bodies. As a result, thousands of non-compliant lawyers are falling through the cracks and many continue to practise despite serious allegations of misconduct. Last week, the LSSA called out the Legal Practice Council (LPC) and the National Prosecuting Authority (NPA), stating there must be swift and transparent action where evidence exists. It also expressed deep concern about the media coverage, which states that over 500 cases involving the alleged theft of more than R1.4bn ($654 909 495) in trust funds by legal practitioners remain unprosecuted. However, the NPA said it had no jurisdiction over such investigations while the LPC said it could serve as witness when the NPA took a matter to court for criminal prosecution, but its involvement ended when a practitioner was struck off. ‘Public trust is the foundation of the legal profession. Every failure to prosecute or meaningfully sanction trust fund theft is a failure of justice – not just for individual complainants, but for the entire legal system. It sends the unacceptable message that those entrusted with the rule of law are themselves above it,’ said Law Society President Nkosana Mvundlela. He said while the figures were ‘deeply concerning’, they must be viewed within the broader context of a legal profession comprising thousands of committed and ethical professionals.

South Africa's Chief Justice Mandisa Maya was visiting the Eastern Cape High Court (Mthatha) today in the wake of allegations that some of the court’s administrative officials demand bribes from attorneys, says a Daily Dispatch report. The Office of the Chief Justice (OCJ) confirmed that Maya would be briefed in Mthatha by Eastern Cape Acting Judge President Zamani Nhlangulela. ‘The OCJ appreciates the public interest generated by the perception of impropriety in the Eastern Cape High Court (Mthatha) and is prepared to account fully and transparently to the public on this matter in due course,’ it said. It was the department’s first public acknowledgment of the existence of an anonymous letter of complaint submitted to Nhlangulela and then Acting Deputy Judge President of the Mthatha court, Bantubonke Tokota, in December 2024, and the first indication that Maya was attending to the allegations of corruption in the letter. Earlier, Justice & Constitutional Development Minister Mmamoloko Kubayi expressed ‘grave concern’ over the ‘deeply troubling and wholly unacceptable’ allegations. She committed to ‘ensuring the integrity of the courts and protecting the rights of all who rely on the justice system’, directing officials in her department to work closely with other government officials to verify the allegations and ensure a thorough investigation was carried out.

Meanwhile, South Africa's opposition party MKP wants declarations of assets and lifestyle audits on the judiciary, saying people who yield so much power ought to be transparent about their lives. ‘If MPs, elected by the people and accountable to the public are required to declare their assets, the same should apply to judges who wield constitutional power and influence over the lives and freedoms of citizens,’ said spokesperson Nhlamulo Ndhlela. TimesLIVE reports that Ndhlela said judges must be held to an even higher standard of scrutiny and criticism in society: ‘SA cannot afford to have a judiciary shielded from the same transparency expected of other arms of state. Judges are not infallible but human and prone like all of us to error, influence, including even bias, whether conscious or otherwise.’ The party said it was also pushing to amend the Constitution to specify that decisions taken by Parliament cannot be reversed by the courts. ‘(We) will change the Constitution to ensure we have Parliament sovereignty to ensure the will of the people prevails, which cannot and should not be reversed by judges who are not legislators but interpreters of the law passed by Parliament as per the will of the people,’ said Ndhlela. The party wants all judges – from the Constitutional Court to the lower courts – to be subjected to lifestyle audits and forced to declare their assets. This would expose who judges were possibly affiliated to and whether their judgments were influenced by relationships with financial interests or affiliation to political parties. ‘As long as judges continue to operate in a cocoon of untouchability, the rule of law remains at risk. Accountability must be universal, not selective,’ added Ndhlela.