A well-known Mthatha lawyer has been sentenced for theft and unlawful misappropriation of trust funds worth R780,000.
On Friday, the Mthatha Specialised Commercial Crimes Court sentenced attorney Vuyani Gwebindlala, 57, to pay a fine of R600,000 or serve five years’ direct imprisonment.
The court also imposed an additional five-year prison sentence, wholly suspended for five years on condition that he is not convicted of theft, fraud, or any offence involving dishonesty during the suspension period.
The court further deferred a fine of R10,000, payable immediately, with the outstanding balance to be paid in equal instalments over five years.
The Hawks’ Mthatha-based Serious Commercial Crime Investigation unit probed the matter.
“The case stems from a property transaction concluded in 2008 involving the complainant, the lawful owner of a residential property situated at Finch Street, Southernwood, Mthatha,” Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana said.
“The complainant entrusted estate agent Angel Engelbrecht with facilitating the sale of the property for the agreed purchase price of R780,000.
“Following the conclusion and signing of the offer to purchase by both the seller and purchaser, the complainant appointed the law firm Vuyani Gwebindlala Associates to oversee and administer the transfer process in accordance with the legal and fiduciary obligations governing property transactions and trust account administration.
“In compliance with the contractual arrangements, the purchaser initially deposited R50,000 into the accused’s trust account, followed by a further payment of R730,000 after the accused represented that the transfer process could not proceed unless the full purchase price had been secured.
“Investigations later revealed that, despite the successful transfer of the property to the purchaser during August 2008, and notwithstanding confirmation that the full purchase price had been received, the accused deliberately and unlawfully withheld the proceeds due to the complainant.
“When the complainant persistently demanded payment of the proceeds arising from the sale of her property, Gwebindlala initially denied that the transfer process had been completed.
“However, when confronted with irrefutable proof confirming that the property had indeed been transferred, he conceded that he had received and utilised the funds.”
A case was opened and handed over to the Hawks for investigation.
Mhlakuvana said the Hawks’ investigation uncovered overwhelming evidence implicating Gwebindlala in the theft of trust funds entrusted to him in his professional capacity as an attorney and officer of the court.
“The investigation found that the accused had clandestinely diverted and invested the complainant’s funds into a Road Accident Fund (RAF) matter without her knowledge, authorisation, or consent, anticipating that the funds would be replenished before the transaction was finalised,” Mhlakuvana said.
Gwebindlala was arrested in January 2019 and was found guilty of theft in June 2021.
The case dragged on for years due to postponements relating to sentencing.
Hawks provincial head Major-General Mboiki Obed Ngwenya lauded the investigating team.
Daily Dispatch
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