The Law Society of Zimbabwe (LSZ) has shut down 16 law firms whose principals failed to produce on demand money deposited by clients into their trust accounts, took fees without doing any work, or could not pay their bills and were even using borrowed chairs.
Setting up a law firm by a graduate lawyer who has worked
briefly under supervision after graduating only demands a practising
certificate, a desk and a chair.
The practising certificate is issued when LSZ is confident
the lawyer or legal firm has proper audited accounts and can hold money for
other people, such as is almost always required in a property transaction.
Misuse of trust funds tends to happen with young lawyers
who crave for a higher life before they are well established.
They dip into the funds they hold for others, meaning to
repay, and then get caught during an audit. Even if they can repay, they are
still not allowed to practice law.
In a notice published last week, the Law Society listed 23
law firms whose curatorship had just been wound up, 16 of which were shut due
to abuse of trust funds and other disciplinary issues.
The other seven were all respectable law firms, but the
principal had died and so they could not continue.
The 16 are: MS Chinyenze & Associates, Allen Moyo
Attorneys, Machokoto & Partners, Obedience Machuvaire Attorneys, James
Mutsauki Legal Practitioners, Cheda & Partners, Tawona & Jaravani
(Harare branch), Maganga & Company, Hute & Partners, AR Chizikani,
Gonesi & Partners, Mutebere & Company, Muskwe & Associates, M
Chasakara Law firm, Marondedze & Makuku legal Practitioners and JP
Oberholzer.
The seven firms shut due to death are: Dumbutshena &
Company, Chibune & Associates, Rugwaro & Associates, Zvinavakobvu Law
Chambers, Takundwa & Company, DW Mhiribidi & Company and Khanda &
Company
The Law Society invited clients to visit the curators of
the 23 law firms for collection of their case files so they could take these to
whoever they selected to offer them legal advice.
The LSZ offices are at 5th Floor, Law Society House, 46
Kwame Nkrumah Avenue, Harare.
While winding up of curatorship may lead to either
permanent closure of the firm or its sale to others, no one can buy a tainted
law firm. Effectively the 16 closed through disciplinary action were shut
permanently.
A check with the files at the Legal Practitioner’s
Disciplinary Tribunal registry at the High Court shows that MS Chinyenze &
Associates’ operations were affected after the principal, Mr Moses Shingiriro
Kanyenze, was de-registered for converting to personal use US$8 450 which was
in the firm’s trust account.
According to the file, a client paid US$8 450 into the law
firm’s account for transfer of the immovable property from the late Christopher
Chimbumu to new owner Joseph Ngondonga but the money could not be accounted for
and no transfer was effected.
Tawona and Jaravani (Harare branch) was shut after
Simbarashe Ekem Tawona, who was engaged for debt collection, reportedly
collected US$7 742 but failed to remit the funds upon demand.
Tawona and Jaravani received US$4 350 from another client
for onward transmission to Wintertons legal practitioners in a civil case but
the funds could not be accounted for.
The other cases were more work not done after payment was
made. Client Mr Edmore Manjiche, who bought property in February 2018 through
the same lawyers, reported to the Law Society that Tawona was paid $47 055 into
the firm’s trust account for conveyancing purposes but no work was done as it
turned out that the property sale was fraudulent; but then efforts to recover
the $47 055 from the lawyers failed.
Tawona was also accused of failing to execute his clients’
mandate after failing to transfer ownership of three newly-purchased properties
despite receiving payment.
James Mutsauki of James Mutsauki Attorneys reportedly
abused US$16 000 that had been deposited into the law firm’s trust account by a
client for transfer of ownership of property.
Ms Nokuthula Nembe complained to the Law Society that she
deposited US$1 500 into Mutsauki’s trust account for transfer of ownership of a
property, but the money could not be accounted for.
Mr Toendepi Tanganyika, who was embroiled in a civil
dispute with POSB claims to have put US$5 000 into the law firm’s account for
onward transmission to the bank, but the money never reached its destination.
A taxi operator also filed a complaint with the Law Society
after Mutsauki reportedly failed to pay him US$82 for services rendered.
A visit by the Law Society revealed that Mutsauki had no
furniture of his own and he was actually using other people’s chairs and desks.
A check with the business and trust accounts showed that James Mutsauki
Attorneys had no funds and that he had rental arrears.
It also turned out that he was operating without a valid
practising certificate.
Lawyer Oscar Hute of Hute & Partners had a number of
cases where money was paid into his trust account during property deals but he
could not produce the money later and so had his firm shut.
He failed to produce a client’s US16 250 on demand when Mr
Hlanganiso Mahlasela sold a house for US$18 000 through Hute & Partners and
kept US$16 250 with the lawyer for the purposes of buying another property. But
when Mr Mahlasela signed the agreement to buy another property, Hute failed to
produce the US$16 250.
Mr Admire Brian Mutenda paid US$7 232 to Hute for transfer
of a property into his name but the money was never accounted for and the work
was never done.
Mr Ndandise Nyama sold a property for US$48 150 through
Hute and he received US$24 000. Hute has since failed to pay him the balance of
US$24 150.
Raphael Maganga of Maganga & Partners failed to account
for about US$120 000 that was in his trust account after a client sold a
property.
Reports were also made against Maganga & Partners that
they were asked to recover a debt on behalf of a client.
The firm received US$930 but it only managed to remit
US$300.
Mr Maganga also reportedly allowed someone who is not a
lawyer to represent clients.
In one of the cases, a man called Timothy Sangarwe did some
legal work at the law firm and the matter came to light when a client’s file
went missing while in the man’s custody.
Mr Tayengwa Dugmore Muskwe of Muskwe & Associates was
deleted from the legal practitioners’ register and had his law firm shut after
he failed to produce US$68 000 deposited into his firm’s trust account when it
was needed.
Mr Obedience Machuwaire of Machuwaire Law Firm was several
times paid for legal services that were never subsequently done.
He was paid US$370 to represent a client in a land dispute
and although he promised to prepare the necessary court papers, he failed to
deliver despite being paid.
Another client Mr Liberty Madamombe engaged Mr Machuwaire
to help in recovering a vehicle that had been impounded. He paid US$350, but no
work was done.
Another client Mr Stephen Marambe engaged Mr Machuwaire to
represent his brother who had been convicted of rape.
The lawyer was instructed to file an application for
condonation of late filing of an appeal. He received US$450 and became evasive
without updating the client on the progress of the case.
In another case Mr Zvinavashe Matanganyidze engaged Mr
Machuwaire for conveyancing services in a property deal. the lawyer was paid
but the transaction turned out to be fraudulent. Instead of refunding the
client his money, as normally happens when lawyers discover this sort of
problem, the money could not be accounted for.
Mr Machuwaire is said to have received US$690 from Mr
Ronald Chiwara for transfer of a newly purchased property but failed to do the
work.
Mrs Angeline Kupara also raised a complaint against Mr
Machuwaire after losing US$4 589. She engaged him to effect the transfer of
ownership in respect of two immovable properties and paid US$4 589. Despite
payment, the lawyer did not do the work. Herald
0 comments:
Post a Comment