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LPC Seeks Disbarment for Misappropriating Lawyer amid RAF Scandal

Published February 05, 2024
1 years ago

The integrity of the legal profession in South Africa has been called into question following serious allegations against Johannesburg lawyer Arnold Mkhabela. The Legal Practice Council (LPC) has brought the matter before the Pretoria high court in a determined effort to have Mkhabela's license to practice law revoked, citing a significant breach of trust in relation to the misappropriation of funds amounting to R8 million, intended for the victims of road accidents.


The high court is grappling with a case that centers around the alleged mishandling of payouts from the Road Accident Fund (RAF), a public entity dedicated to providing compensation to South Africans injured in road accidents. The LPC's pressing concerns have led to vigorous legal action after having received 51 complaints against Mkhabela, with a striking 21 related to the misappropriation of funds.


Mkhabela's alleged actions have significant ramifications for those reliant on RAF payouts. The case came to a critical juncture when LPC lawyer Mari Moolman addressed the court, emphasizing the gravity of the situation and the potential risks posed by the accused to the public. Despite these concerns, Mkhabela's attorney, Rammilane Maesela, requested additional time to review the case, arguing that a suspension would be premature since the client had not yet presented arguments due to discomfort with the previous counsel's approach and financial constraints precluding the appointment of a new attorney.


The LPC's proposal of an interim suspension was rejected by the high court, which instead ordered Mkhabela to provide his formal argument by the end of the month, with a subsequent hearing set for May. However, the seriousness of the allegations has led to notable hardships for Mkhabela's clients, such as Joyce Mbonani, who has been wrestling with the attorney for years in attempts to claim her due payout from the RAF.


The complaints of financial mismanagement extend beyond victim payout issues, as Standard Bank has also instigated legal action against Mkhabela for unpaid debts that include two luxury vehicles and a credit card.


The Sowetan has previously highlighted the contrast between the financial strife of Mkhabela's clients and his lavish lifestyle. Furthermore, recent visits to Mkhabela's offices by both the Sowetan and distraught clients have painted a picture of uncertainty and decline, with the once-busy space appearing emptier and whispers of an impending move to a new office location.


The unfolding scandal surrounding Mkhabela not only undermines the trust vested in those tasked with handling sensitive funds but also highlights the essential role of regulatory bodies such as the LPC in maintaining ethical standards within the South African legal profession.


As the case progresses, it remains to be seen whether the recommended disbarment will become a reality, and more importantly, whether the victims of this alleged misconduct, such as Mbonani, will finally see justice served.



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