Only 59 Convictions After R1.4 Billion Stolen From Clients by Lawyers

Hundreds of lawyers accused of stealing their clients’ money from trust accounts remain untouched by the justice system, despite the staggering scale of the alleged theft. Over 500 cases involving more than R1.4 billion have yet to be prosecuted, raising alarms about the integrity of legal oversight in South Africa.

This revelation comes from the latest statistics released by the Legal Practice Fidelity Fund, which highlighted that only a fraction of cases—59 convictions—have led to consequences over the past seven years, with just 25 resulting in jail time.

Public trust in legal system under threat

Wayne Duvenage, CEO of the Organisation Undoing Tax Abuse (Outa), said the lack of urgency shown by the National Prosecuting Authority (NPA) and the Legal Practice Council (LPC) undermines public confidence in the legal profession.

He criticised the NPA’s repeated claim of insufficient capacity to deal with complex financial crime. “This excuse must come to an end,” Duvenage stated. He added that disciplinary processes within the LPC are often unclear and fail to keep complainants informed.

He also warned that regulators may be hesitant to act decisively, fearing the erosion of confidence in the legal system. “There appears to be a reluctance to aggressively pursue misconduct within the legal profession,” he said.

Calls for stronger oversight

Before the LPC was established in 2018, Duvenage said the provincial law societies failed to respond adequately to growing cases of trust fund theft. He alleged that many individuals from those structures remain influential and continue to slow down regulatory reform.

According to Duvenage, real change will only come when the LPC collaborates closely with the NPA, SAPS, and Treasury to prosecute lawyers who commit theft, and when Parliament holds regulatory bodies accountable. He added that recapitalising the Fidelity Fund is an urgent priority.

Legal Practice Council responds

LPC spokesperson Kabelo Letebele rejected the notion that the council is to blame for the delays, noting that the LPC receives over 1,000 complaints monthly and closed more than 90% of them in each of the last two years. He said more than 150 legal practitioners have already been suspended or struck off in 2024 alone.

Letebele explained that the LPC’s role is limited by law. Once their independent disciplinary process is complete, the council may apply to the courts for sanctions. If a practitioner is struck off, criminal prosecution then falls to the police and NPA.

“We do provide information and testimony in support of criminal proceedings, but we do not oversee those processes,” he said.

‘One case is one too many’

Law Society of South Africa president Nkosana Mvundlela said the figures are a serious concern, even if only a small portion of legal professionals are involved.

“While most legal practitioners act with integrity, these incidents damage public trust and tarnish the reputation of the entire profession,” he said.

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Sourced:The Citizen

Picture: AGP LLP