Gupta lawyer in hot water

THE Law Society has instituted an investigation against Gupta family attorney Gert van der Merwe, who has admitted to playing a part in laundering monies in a corruption case involving about R16 million.

If found guilty, Van der Merwe could be suspended or have his name struck off the roll.

The investigation by the Law Society was prompted by a news report on how Van der Merwe had turned State witness in the case involving former Limpopo MEC for health and ANC national executive committee member Miriam Segabutla and a businessman.

In 2013, Segabutla was arrested for tender fraud alongside businessmen Jonny Lucas and Pieter Erasmus.

Lucas’s forensic firm, Tsepo Technology Consulting, was paid R8m to investigate the Limpopo provincial health information system while Trispen Solutions, owned by Erasmus, was paid R7m to probe alleged procurement negligence and wasteful expenditure for the purchasing of light switches.

Trispen was also Van der Merwe’s client.

The Mercury’s sister newspaper, The Star, reported in 2013 how then public protector Thuli Madonsela had found that Segabutla had breached the executive ethics code of conduct when she instructed Van der Merwe to handle her divorce despite Van der Merwe being subcontracted by Trispen.

Van der Merwe confirmed yesterday that he was also arrested in 2013 and that he had subsequently filed a Section 204 affidavit and had co-operated fully with the National Prosecuting Authority in the matter.

It is alleged that Van der Merwe’s attorney trust account was used to launder monies from the businessman to the MEC. According to Eyewitness News, which broke the story yesterday, the businessman paid tens of thousands of rand to the trust account.

The monies were then used by Van der Merwe to pay for Segabutla’s daughter’s school fees and payments to Sars.

According to the report, Van der Merwe states in his affidavit that in one instance R100 000 in cash was dropped off at his office. He later delivered the stash personally to Segabutla.

By becoming a Section 204 witness, Van der Merwe will testify against the accused in the matter which has been partly heard, and will be granted indemnity from prosecution if the presiding judge is satisfied that he answered honestly and truthfully.

However, the director of the Law Society in northern provinces, Marthinus Grobler, said indemnity does not affect the Law Society’s authority to investigate the matter and take appropriate action.

Grobler said that while no formal complaint was submitted to them, the body had a responsibility to investigate allegations of improper conduct by attorneys even based on media reports.

In a statement issued yesterday, Van der Merwe admitted that he was arrested three years ago but said he had never “knowingly, intentionally or actively participated in any criminal activities”. He expressed regret that his “services and infrastructure” might have have been used for money laundering.

He said as soon as he suspected ill-conduct he acted decisively to prevent any possible participation in any such activity”.

He emphasised that all charges against him were withdrawn and that he had never received any undue benefit. “At no point was my involvement on the facts alleged in the affidavit denied, kept a secret or withheld,” said Van der Merwe.

He said the case was not connected to the Gupta family or their company Oakbay, which he represents.

Grobler said the first step would be to ask the concerned attorney for an explanation. The matter would then be referred to a disciplinary hearing process.

However, if it was felt that the matter was too serious, steps would be taken to ensure a speedy process which could include referring the matter directly to the council. After findings the council may then apply to court to take further action.

The Law Society of the Northern Provinces handles complaints against attorneys practising in Gauteng, Limpopo, Mpumalanga and North West provinces.

National Prosecutions Authority (NPA) spokesperson Luvuyo Mfaku refused to comment, saying that the matter is in court. “If we pronounce we will be violating our own policies because it can then be seen as if we are conducting a parallel trial”.

Police spokesperson Major General Sally de Beer referred The Mercury to the Hawks. However, Hawks spokesperson Hangwani Mulaudzi said “this is not our case” and referred The Mercury back to the SAPS.