Prominent Queenstown attorney Milile Martin Mpambaniso has been convicted in the Bhisho high court of fraud for charging fees in dubious lawsuits.
Mpambaniso initially faced 92 charges of fraud for bringing fictitious applications to court to compel the department of social development to consider and decide on various beneficiaries’ application for social grants.
In total, he was alleged to have raked in R1.6-million in legal fees from the applications once the department caved in and agreed to settle each lawsuit, including paying the costs of the application.
But after a trial that stretched to almost a decade, Mpambaniso was convicted on 28 counts of fraud involving an amount totalling only R67523.
He will return to court on December 10 for sentencing procedures.
The offences were committed in 2003 and involved various indigent or disabled people who were duped into affixing signatures or fingerprints to documents which Mpambaniso submitted to court ostensibly on their behalf for social grants to be issued to them.
According to the state, the individuals never received grants as a result of these court applications. They were simply part of a scheme to bring money into Mpambaniso’s coffers.
Once the department settled the lawsuit in favour of Mpambaniso’s fake client, the attorney submitted a bill of costs for his fees which was taxed by the court. It is the total of these bills which make up the R1.6-million.
However, Judge Jean Nepgen, sitting in East London, said that as a result of the manner in which the state had formulated the charges, Mpambaniso could only be convicted on the value of the taxed bills which, invariably, were substantially lower than what he initially charged.
He also found that, because the state had brought separate charges, it had to prove all the elements of each offence for which Mpambaniso was charged.
Despite these challenges, Nepgen said the state had proved that consultations which the accused claimed had taken place with grant applicants, had never happened. He said Mpambaniso had misrepresented the situation when he submitted the bills.
The Dispatch reported at the time the Scorpions started an investigation that Mpambaniso, fellow Queenstown attorney Zuko Nonxuba of Nonxuba Incorporated, Thobela Mnqandi of WT Mnqandi Attorneys from Idutywa and Philisa Mnqandi of Dambuza Mnqandi Incorporated from Mthatha, were allegedly part of the elaborate scheme which saw them make some R20-million in fees from dodgy lawsuits.
Summing up the evidence against Mpambaniso, Nepgen said the scheme was possible as a result of the Eastern Cape provincial social development department’s lethargic attitude towards applications for social grants.
Although many of the grant applicants considered their applications not to have been successful, in most cases, the department had simply not responded to the applicant.
“The court applications were accordingly brought to do something about this situation.”
According to reports at the time, the Bhisho High Court was handling up to 120 matters each week to compel the department to process grant applications.
Departmental officials reported in 2006 paying out R80-million in legal fees for lawsuits brought to compel the payment of R4.2-million in grants to 548 beneficiaries.
Mpambaniso had pleaded not guilty to all the charges and elected not to testify in his defence. – rayh@dispatch.co.za
Lawyer found guilty of fraud after social grants’ dodgy lawsuits
Mpambaniso initially faced 92 charges of fraud for bringing fictitious applications to court to compel the department of social development to consider and decide on various beneficiaries’ application for social grants.
In total, he was alleged to have raked in R1.6-million in legal fees from the applications once the department caved in and agreed to settle each lawsuit, including paying the costs of the application.
But after a trial that stretched to almost a decade, Mpambaniso was convicted on 28 counts of fraud involving an amount totalling only R67523.
He will return to court on December 10 for sentencing procedures.
The offences were committed in 2003 and involved various indigent or disabled people who were duped into affixing signatures or fingerprints to documents which Mpambaniso submitted to court ostensibly on their behalf for social grants to be issued to them.
According to the state, the individuals never received grants as a result of these court applications. They were simply part of a scheme to bring money into Mpambaniso’s coffers.
Once the department settled the lawsuit in favour of Mpambaniso’s fake client, the attorney submitted a bill of costs for his fees which was taxed by the court. It is the total of these bills which make up the R1.6-million.
However, Judge Jean Nepgen, sitting in East London, said that as a result of the manner in which the state had formulated the charges, Mpambaniso could only be convicted on the value of the taxed bills which, invariably, were substantially lower than what he initially charged.
He also found that, because the state had brought separate charges, it had to prove all the elements of each offence for which Mpambaniso was charged.
Despite these challenges, Nepgen said the state had proved that consultations which the accused claimed had taken place with grant applicants, had never happened. He said Mpambaniso had misrepresented the situation when he submitted the bills.
The Dispatch reported at the time the Scorpions started an investigation that Mpambaniso, fellow Queenstown attorney Zuko Nonxuba of Nonxuba Incorporated, Thobela Mnqandi of WT Mnqandi Attorneys from Idutywa and Philisa Mnqandi of Dambuza Mnqandi Incorporated from Mthatha, were allegedly part of the elaborate scheme which saw them make some R20-million in fees from dodgy lawsuits.
Summing up the evidence against Mpambaniso, Nepgen said the scheme was possible as a result of the Eastern Cape provincial social development department’s lethargic attitude towards applications for social grants.
Although many of the grant applicants considered their applications not to have been successful, in most cases, the department had simply not responded to the applicant.
“The court applications were accordingly brought to do something about this situation.”
According to reports at the time, the Bhisho High Court was handling up to 120 matters each week to compel the department to process grant applications.
Departmental officials reported in 2006 paying out R80-million in legal fees for lawsuits brought to compel the payment of R4.2-million in grants to 548 beneficiaries.
Mpambaniso had pleaded not guilty to all the charges and elected not to testify in his defence. – rayh@dispatch.co.za
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos