Attorneys Izak Steenkamp and Rehan Coetzee Face Suspension and Legal Battles Over Missing Trust Funds
In a recent legal saga that has captured the attention of the South African legal community, two attorneys, Izak Steenkamp and Rehan Coetzee, find themselves suspended from practising law and embroiled in disciplinary proceedings. Their alleged involvement in the theft of over R2 million from a trust fund has raised concerns about ethics and accountability in the legal profession. This article delves into the details of the case, the implications of their suspension, and the challenges they now face in clearing their names.
The Legal Practice Council’s Actions
The South African Legal Practice Council (LPC) took a bold step by seeking the suspension of Izak Steenkamp and Rehan Coetzee from practising law while investigations were underway. Both Steenkamp and Coetzee were established attorneys, duly enrolled with the LPC, with Steenkamp admitted in September 2002 and Coetzee in September 1999.
A Troubling History
The story begins with Steenkamp and Coetzee practising under the name of Steenkamp, De Villiers, and Coetzee. However, their journey took a dark turn when a deficit in their trust banking account came to light. As a result of this financial irregularity, they closed their practice and joined forces with Steenkamp and Jansen Incorporated. In the process, they transferred all their files, excluding those under investigation, to their new firm.
The LPC’s Allegations
The LPC alleges that there was a significant deficit in the trust account, amounting to at least R2,556,944.16 during their tenure as directors of Steenkamp, De Villiers, and Coetzee. To address the situation, a curator bonis was appointed to manage the trust account. An audit identified R2,048,925.84 as misappropriated funds, with an additional unidentified shortage of R508,018.32. It’s worth noting that a former bookkeeper employed by the respondents at their previous firm was also implicated in stealing a substantial sum from the trust account, ultimately repaying R840,000. However, the trust deficit remained substantial at R3,396,944.16 prior to this repayment.
The Legal Community’s Concerns
The LPC’s concerns extended beyond financial irregularities. They received a staggering 127 complaints against the attorneys, their law firm Steenkamp and Jansen Inc., and Theunis Jansen, the sole director of the firm. These complaints were described by Judge Somaganthie “Soma” Naidoo as being “of a serious nature.” Furthermore, Steenkamp’s failure to respond promptly to these complaints added to the mounting issues. Additionally, the attorneys closed their practice without notifying the Law Society, as required by rules, and failed to submit a final audit regarding the closure.
The High Standards Expected
Judge Naidoo emphasized the high standards of integrity, competence, and diligence expected of attorneys under the former Attorneys’ Act, the then-applicable Rules of the Free State Law Society, the Legal Practice Act (LPA), and the current Code of Conduct. She noted that the complaints against the respondents raised concerns about their compliance with these standards and regulations.
Suspension and Legal Battles
In light of the serious allegations and the attorneys’ failure to meet their professional obligations, both attorneys were ordered to hand over their certification of admission to the registrar of the high court. Failure to comply with this order could result in a sheriff seizing the certificates. While Izak Steenkamp and the LPC did not respond to inquiries, Rehan Coetzee indicated that he plans to appeal the court’s decision. Coetzee maintained his innocence, stating that he faced no criminal charges and had already taken action against employees misappropriating trust funds in 2015 and 2016.
Coetzee’s Perspective & the Trust Account
Coetzee explained that the disciplinary panel had dismissed the charges against them, stating that there was no evidence of failure to maintain proper accounting records. He expressed frustration with the LPC’s handling of the matter, asserting that they had already been exonerated by the disciplinary committee. Coetzee believes that their punishment is unwarranted, especially considering their seven-year struggle to regain the ability to practice law independently after losing their firm.
The case of Izak Steenkamp and Rehan Coetzee serves as a stark reminder of the importance of ethics, transparency, and accountability within the legal profession. The allegations of theft of trust funds and the subsequent suspension from practising law raise critical questions about the integrity of legal practitioners and the regulatory mechanisms in place. As the legal battle unfolds, the South African legal community watches closely to see how this complex and contentious case will ultimately be resolved.
Persistent Issue: Lawyers Accused & Convicted of Theft
Instances of lawyers being accused of theft and some even being convicted are unfortunately not isolated cases. In a recent example from the North West province in 2020, thieving lawyer Isak Snyman, aged 46, received a significant 10-year sentence from the Specialised Commercial Crimes Court in Pretoria.
The charges against Snyman stemmed from the theft of trust funds, where approximately R4 million had been deposited into his trust account with the intention of purchasing properties. However, instead of fulfilling this purpose, Snyman misappropriated the funds, leading to his conviction. This case serves as a reminder that breaches of trust within the legal profession are not unique incidents.
