Dishonest lawyer who stole over R348 million intended for disabled children struck off the roll

Disgraced attorney Zuko Nonxuba, has been struck from the roll legal practitioners by the Western Cape High Court after it was found that he was dishonest and lacked integrity.

The ruling was made after the Legal Practice Council (LPC) brought an application to remove Nonxuba from practice following complaints of him allegedly stealing money from vulnerable clients.

According to court documents, Nonxuba specialised in personal injury and medical negligence cases in various provinces in the country.

Most of the cases involved parents of children who sustained birth injuries because of negligence on the part of medical personnel during the birth process, resulting in hypoxic ischaemic encephalopathy, foetal distress and, ultimately, cerebral palsy.

Nonxuba represented children who were found to have suffered debilitating mental and physical harm because of the negligence of personnel of the Eastern Cape Health Department.

In all five claims, the MEC for Health was ordered to pay over R348 million in damages to Nonxuba's law firm which, in turn, the firm had to establish trusts to administer the monies for the benefit of the disabled children, this had to be done within six months after the order was made.

All five medical negligence claims were made during 2018 and 2019, as of July 2021, Nonxuba had not established all the trusts, and where the trusts had been established, he failed to pay the monies due to these trusts. 

He was suspended in June 2021 after more allegations of misconduct surfaced and he failed to provide adequate explanation for the allegations.

Nonxuba utilised all available appeal mechanisms in a bid to challenge his suspension, including a reconsideration application to the President of the Supreme Court of Appeal and an appeal to the Constitutional Court, however, all his appeals were unsuccessful.

During the course of the litigation preceding the hearing of the suspension application, Nonxuba delivered various affidavits and over 2000 accounting documents including documents claiming that the money was paid to five medical negligence claims that he had handled.

However, the LPC contended that the trust reconciliation and client ledger accounts were fabricated.

The LPC submitted that these documents revealed several irregularities which amounted to a breach of the rules of the profession made under the LPC Act.

It was further added that Nonxuba’s fabrication on trust account reconciliation, the delay in paying the awards to the respective trusts, and the round transfers, created a suspicion that he had stolen trust monies and had fabricated accounting records to hide his malfeasance.

The LPC said due to the serious misconduct, Nonxuba was not a fit and proper person to practice as an attorney.

Noxuba denied any allegation of knowingly fabricating ledger accounts or of having stolen or misappropriated trust monies, but he admitted that he may not have strictly complied with the LPC rules relating to the operation of his trust account and the keeping of accounting records.

He added that he loaned mothers of the disabled children to pay for their medical treatment and daily expenses. These loans were treated as disbursements against the money received on their behalf.

Judge Matthew Francis heard the matter and said from the evidence placed before court, it appeared that Nonxuba was not guilty of a mere moral lapse, but his conduct was suggestive of a character defect that has severely compromised his integrity.

"He initially denied breaching any of the LPC’s rules but then in the same affidavit states that he had not acted strictly in accordance with certain of these rules. His prevarication speaks volumes about his integrity, or lack thereof. In my view, his lack of candor and his prevarications are an indication of his dishonesty and lack of integrity," said judge Francis.

Judge Francis added that misappropriation of trust monies was amongst the most serious offences which an attorney may commit because it undermines the very core of the relationship between an attorney and client.

"Theft of trust funds by practitioners does not only result in untold hardship for the victims, but it also brings the legal profession into disrepute. Those legal practitioners who violate the rules and ethics of the profession by failing to uphold the highest standards of honesty, reliability and integrity must suffer the consequences of their nefarious actions," said the judge.

Furthermore, judge Francis said Nonxuba was not a fit and proper person to continue practicing as an attorney.

"His name should, accordingly, be struck from the roll of legal practitioners and a curator bonis be appointed to manage the files and affairs of the public that were entrusted to him."

Nonxuba was ordered to surrender and deliver his certificate of enrolment as an attorney.

He was also ordered to pay the costs of the application.

sinenhlanhla.masilela@iol.co.za

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