“These are lawyers who’ve abused the trust of their clients and their privilege,” he said. Molefe believes much of the problem is in the structure of trust account management. <\/p>\n\n\n\n
\u201cLawyers have considerable autonomy over these accounts, and auditing only happens once a year. When discrepancies are discovered, the funds have often long since vanished.\u201d <\/p>\n\n\n\n
The types of trust funds affected vary, but Molefe highlights conveyancing\u2014the legal transfer of property\u2014as a long-standing concern. <\/p>\n\n\n\n
Claims related to the Road Accident Fund (RAF) have also been a frequent target, with an alarming new trend of theft from medical malpractice settlements. <\/p>\n\n\n\n
These are often large payouts meant to support victims of life-altering events, and when stolen, the impact is devastating. <\/p>\n\n\n\n
“This is money that could have helped them get along, helped them get through whatever they’re dealing with at the moment,” Molefe said.<\/p>\n\n\n\n
Despite regulatory safeguards, loopholes continue to be exploited. One persistent issue, Molefe said, is the lack of cooperation between institutions. <\/p>\n\n\n\n
\u201cThe gap is always about cooperation,\u201d he explained. For example, the RAF might pay out funds to a legal practitioner without knowing whether those funds were ever passed on to the rightful claimant. <\/p>\n\n\n\n
Without real-time data sharing between institutions, theft often takes months, or even years, before it is discovered.<\/p>\n\n\n\n
Problem not taken seriously<\/h2>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/04\/the-CEO-of-LPFF-Motlatsi-Barnabas-Molefe-1024x576.jpg\")
<\/a>SIU, Legal Practitioners Fidelity Fund sign MoU to investigate fraud, corruption in legal profession. LPFF CEO Motlatsi Barnabas Molefe (left) and SIU head Advocate Andy Mothibi (right). <\/em><\/figcaption><\/figure>\n\n\n\nTo address this, the LPFF recently signed a memorandum of understanding with the Special Investigating Unit (SIU), a move Molefe said would change the tide. <\/p>\n\n\n\n
\u201cWe are truly in a position where we are hoping it will make a difference,\u201d he said. The SIU brings stronger investigative powers and speed, allowing quicker freezing of stolen funds and assets. <\/p>\n\n\n\n
Molefe believes this partnership will give the Fund a better chance of recovering stolen money and settling claims more efficiently.<\/p>\n\n\n\n
Molefe urged clients to be proactive. \u201cIf a matter is taking too long, particularly RAF cases, clients can call the RAF directly and check the status of their payout using their ID number.\u201d <\/p>\n\n\n\n
For other legal matters, Molefe recommended contacting the Legal Practice Council (LPC), which has offices in every province. <\/p>\n\n\n\n
Wayne Duvenage, CEO of the Organisation Undoing Tax Abuse (OUTA), is far less optimistic. He believes <\/a>the situation points to a systemic failure. <\/p>\n\n\n\n“The lack of accountability in trust fund theft cases in South Africa is not taken seriously by the National Prosecuting Authority (NPA) or the Legal Practice Council,\u201d Duvenage said.<\/p>\n\n\n\n
He added that this neglect undermines public trust in the legal profession. He also criticised the LPC\u2019s internal disciplinary processes, calling them \u201copaque and weak.\u201d <\/p>\n\n\n\n
Duvenage rejected the common justification that the NPA lacks capacity. \u201cThis excuse must end,\u201d he said, insisting that complex financial crimes must be treated with the urgency and seriousness they deserve.<\/p>\n\n\n\n
<\/a>To address this, the LPFF recently signed a memorandum of understanding with the Special Investigating Unit (SIU), a move Molefe said would change the tide. <\/p>\n\n\n\n
\u201cWe are truly in a position where we are hoping it will make a difference,\u201d he said. The SIU brings stronger investigative powers and speed, allowing quicker freezing of stolen funds and assets. <\/p>\n\n\n\n
Molefe believes this partnership will give the Fund a better chance of recovering stolen money and settling claims more efficiently.<\/p>\n\n\n\n
Molefe urged clients to be proactive. \u201cIf a matter is taking too long, particularly RAF cases, clients can call the RAF directly and check the status of their payout using their ID number.\u201d <\/p>\n\n\n\n
For other legal matters, Molefe recommended contacting the Legal Practice Council (LPC), which has offices in every province. <\/p>\n\n\n\n
Wayne Duvenage, CEO of the Organisation Undoing Tax Abuse (OUTA), is far less optimistic. He believes <\/a>the situation points to a systemic failure. <\/p>\n\n\n\n “The lack of accountability in trust fund theft cases in South Africa is not taken seriously by the National Prosecuting Authority (NPA) or the Legal Practice Council,\u201d Duvenage said.<\/p>\n\n\n\n He added that this neglect undermines public trust in the legal profession. He also criticised the LPC\u2019s internal disciplinary processes, calling them \u201copaque and weak.\u201d <\/p>\n\n\n\n Duvenage rejected the common justification that the NPA lacks capacity. \u201cThis excuse must end,\u201d he said, insisting that complex financial crimes must be treated with the urgency and seriousness they deserve.<\/p>\n\n\n\n