Disgraced attorney Zuko Nonxuba – under whose watch R188m in medical negligence payouts to severely disabled children disappeared – has been declared unfit to practise and been disbarred, in what the provincial Health Department called a victory against 'shameless robbery'.
The lawyer, said a Western Cape High Court judge, was engaged in “widespread theft”, and not guilty of a mere moral lapse, but of conduct “suggestive of a character defect that has severely compromised his integrity”.
“I am satisfied the LPC (Legal Practice Council) has properly established on a balance of probabilities … Nonxuba has failed to comply with various court orders, fabricated accounting records, breached a number of LPC rules relating to the management and operation of his firm’s trust account, and engaged in the widespread theft of funds held in trust on behalf of his clients,” said Judge Matthew Francis.
"I am of the view he is clearly not a fit and proper person to continue practising 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.”
During its application for Nonxuba to be disbarred, the LPC revealed that he had transferred a staggering R348 845 000 from his disabled child clients’ trust account to his firm’s business account – and was “helping himself” to money meant for the care of those children, reports News24.
The mother of one of these children in a separate case revealed how the little boy had been left severely ill and malnourished because she didn’t have enough money to buy food for him. She only became aware that Nonxuba had won a R13m medical negligence settlement for her son after Carte Blanche contacted her.
Eastern Cape hairdresser Milicent Molose told the court she and the mothers of 11 children diagnosed with cerebral palsy had received only between R150 000 and R300 000 from Nonxuba. They had no idea he had obtained massive multimillion-rand settlements that were sometimes more than 172 times the amounts he had given them.
Nonxuba had told them the amounts he had paid them were “the full portion” due to them. The mothers also had no idea he had been ordered to register trusts for each child that was supposed to be carefully managed funding for their care.
In his ruling, Francis stressed that a lawyer’s theft of trust funds not only resulted “in untold hardship for the victims, but it also brings the legal profession into disrepute”.
Francis also agreed with the LPC that Nonxuba had fabricated financial records in his repeated litigious efforts to fight his suspension and ultimate removal from the attorneys’ roll.
While Nonxuba later admitted that the financial records were not adequate, even though he claimed under oath they were, Francis noted that the disgraced attorney had tried to excuse the failings by claiming he had “limited time to prepare, and was hampered by a lack of information”.
Nonxuba had also argued that he was ignorant of accounting practices and suggested that this was a mitigating factor in how the judge should deal with the evidence against him.
In court papers, the LPC had accused Nonxuba of creating a “fabricated” payment summary in an attempt to convince the council that he had, in fact, paid the money needed to fund the children’s care.
Bank account statements showed that the transfers Nonxuba recorded had not actually happened then, LPC chairperson Janine Myburgh told the court. Worse still, Nonxuba’s firm provided “redacted” bank statements to the LPC in an apparent bid to conceal the fact that he was the direct beneficiary of certain of these transfers.
“It is…. inconceivable that (Nonxuba) was entitled to the trust funds amounting to R348 845 000, transferred in perfectly round amounts on 759 occasions since January 2017. It is therefore respectfully submitted …he has misappropriated an astonishingly large amount of trusts from his clients," Myburgh said.
Nonxuba had failed to comply with “at least” five court orders that required him to set up trusts “and to pay over to the trustees the funds due to them”.
Nonxuba had rested his defence against these accusations on the testimony of an accountant whom he claimed would exonerate him. But, as Francis’ ruling reveals, that was not what happened.
"The irresistible inference is that, even on Nonxuba’s own version, at least some of the funds were misappropriated as the payments had not been authorised,” he said, adding that the accountant had also identified a trust deficit “in excess of R20m; hardly small change”.
“The true scale of the theft was considerably more,” the judge added.
While Nonxuba had begged Francis to regard his alleged misconduct as “less severe” and suggested he should be allowed to remain practising under supervision, the judge rejected that argument.
“In my view, an officer of the court whose integrity is severely compromised has no place in the legal profession,” he said.
DispatchLIVE reports that the Eastern Cape Health Department welcomed the High Court’s ruling, describing it as “the perfect early Christmas present”.
Health MEC Ntandokazi Capa’s spokesperson, Mkhululi Ndamase, described Nonxuba as a “disgraced” lawyer.
“After years of allegedly submitting fraudulent medico-legal claims and keeping the lion’s share of settlements meant for his clients, disgraced attorney Zuko Nonxuba has been disbarred,” Ndamase said.
The Eastern Cape Government supported the LPC by providing evidence in the case, leading to Nonxuba’s disbarment.
Capa has welcomed the decision, calling it a victory for the department, government and the innocent children Nonxuba exploited.
“This is a victory, not only for the department and government but for all the innocent children (with alleged cerebral palsy) he shamelessly robbed,” she said.
“Now that he has been found to have engaged in widespread theft by the Western Cape High Court, we are hopeful that he will also be criminally charged and prosecuted accordingly.
“We welcome the Western Cape High Court decision; this is the perfect early Christmas present.”
The department said Nonxuba’s actions compromised its ability to provide care to millions dependent on the public health system.
“The upfront, lump sum settlements over time became a major threat to the department and, by extension, the provincial government,” Ndamase said.
The provincial Health Department is pursuing a criminal case against Nonxuba.
The case, which is being heard at the East London Specialised Commercial Crimes Court, is still pending.
DispatchLIVE – Eastern Cape health department welcomes disbarring of disgraced lawyer Zuko Nonxuba
See more from MedicalBrief archives:
Minister targets dodgy lawyers as SIU probes R30bn medico-legal claims
Justice in sight for cerebral palsy victims of rogue attorney
Lawyer in medico-legal fees wrangle escapes sequestration bid
Lawyer who blew disabled children’s millions ‘should be struck off’