By Auxilia Katongomara
The Law Society of Zimbabwe (LSZ) has turned to insurance as it struggles to pay claims of over $4 million as a result of theft, fraud, forgery and or dishonest practices by lawyers with 16 having been placed under curatorship this year.
The LSZ administers a fund whose purpose is to compensate members of the public who would have incurred losses due to theft, fraud and other dishonest practices committed either by a registered legal practitioner or their employees.
The threats have doubled from $2 million last year.
According to the LSZ annual report, Chairman of the Compensation Fund, Mr Rodgers Matsikidze said the society was in dire straits with $800 000 in its coffers, against possible claims amounting to $4 million.
“The total threats to compensation fund amount to $4 058 573.85. Since we only have $803 393 in the Fund, the old threats on their own cannot be sustained by the Fund. This underscores how vital the Fidelity Guarantee ad Indemnity Policy is as going forward such threats will be absorbed by that policy,” said Mr Matsikidze.
He said the year 2018 marked the first roll out of the Fidelity Insurance to pay out for threats.
The society has also notified the insurance broker of potential claims as and when such claims have been received, he said.
He said their forecast was that the insurer may raise premiums considering the magnitude of claims that are arising and there was a need to have a holistic approach on law firm establishment and management.
Mr Matsikidze said:
“During the course of the year 16 law firms were under curatorship for different reasons such as death of a partner, abandonment of practice, deregistration and abuse of trust funds. A further eight law firms have been recommended for curatorship.”
Among the law firms with the highest claims are Cheda and Partners which was placed under curatorship claims amounting to $600 000 and Machekeche and Partners with claims of $900 000.
Bulawayo law firms, Mhiribidi which is under curatorship and James Mutsauki which is before the disciplinary tribunal for deregistration have claims of $20 000 and $25 000 respectively.
Last year the LSZ was faced with claims of over $2 million with 60 lawyers having been fined for practising without certificates. The Chronicle
