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The Law Society of Zimbabwe (LSZ) which recently shut down 16 law firms after principals failed to produce on demand money deposited by clients into their trust accounts and took fees without doing any work, said the misuse of trust funds was not limited to new law firms.
In a statement clarifying an earlier report, LSZ executive secretary Mr Edward Mapara said complaints received from clients were against both new and old law firm.
“Misuse of trust funds occurs and this is not limited to new law firms. The Law Society of Zimbabwe does not wait for annual audits to expose these acts of misconduct but this has been revealed through complaints by prejudiced clients or our own scheduled and unscheduled compliance visits to various firms,” reads the statement.
LSZ said there is an elaborate process which is carried out before accrediting a law firm.
“The post registration practical training requirements are clearly set out in the Law Society General Regulations SI 137 of 1999 as read with General Notice 45 of2013.
“In terms of these statutory provisions, all graduates admitted prior to 1 March 2013 will have to practice under an approved principal for 36 months and familiarise with the practical aspects of bookkeeping, trust accounting, ethical and professional conduct, practice management before they can be allowed to practice on their own or in partnership.
“All graduates admitted after 1 March 2013 will have to register with the Council for Legal Education (CoLE) and undertake Level 1 to 3 of the Compulsory Pupillage Training (CPT), including attending the relevant seminars and exams before they are issued with certificate of completion of CPT by the CoLE.
“The CPT programme has a concurrent on the job training administered at the law firms under approved principals for a period of three years. The society further introduced risk-based regulation in 2018 and introduced additional risk-based requirements which applicants seeking to establish new law firms will have to meet. These requirements include having in place a governance framework, meeting minimum capital requirements and demonstrating practical competency on practice management as well as financial management in a law firm set up,” reads the statement.
The lawyers should also be cleared of disciplinary issues, meet staffing requirements, office infrastructure, computers and accessories among other resources including functional library. In a notice published recently, 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 & Mukuku 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.
Online Reporter