Lawyer probed on R3m investment

THE law society in Pretoria has confirmed that it is investigating the conduct of a lawyer who is alleged to have had a private client pay R3-million to invest in a nonexistent gas exploration company.

The lawyer, Joseph Maluleke, executive chairman of Pretoria law firm Rooth & Wessels, is also a member of the Sectional Titles Regulations Board.

He is alleged to have asked businessman Kenneth Kotelo to take up a 12% stake in the company after consulting with him on a separate matter.

The law society confirmed to the Sunday Times that the complaint against Maluleke was received on November 7 last year.

Kotelo, then managing director of Seroto Investments, accused Maluleke of taking advantage of the fact that he received information about the company’s financial position during the consultation.

He said the company was told there was a “ready” gas exploration business venture in the South Atlantic ocean and that Maluleke said it was looking for a “black-owned company”.

Maluleke has denied any impropriety and said there was nothing untoward in the transaction.

“The transaction was not for the acquisition of a gas exploration project, but for a 12% shareholding in Southern Independent Energy, a ‘classic start-up’ company” which looked for opportunities in the alternative energy sector.

“As with all start-ups, the risk inherent in such investments was abundantly clear to all,” Maluleke said. — Isaac Mahlangu