MTHATHA – A Mthatha attorney has been sentenced after being convicted of unlawfully misappropriating R780,000 in trust funds linked to a property transaction dating back to 2008.
According to the Directorate for Priority Crime Investigation (Hawks), Vuyani Gwebindlala (57), was sentenced in the Mthatha Specialised Commercial Crimes Court following an investigation by the Hawks’ Serious Commercial Crime Investigation unit in Mthatha.
On May 8, the court sentenced him to pay a fine of R600,000 or serve five years’ direct imprisonment.
An additional five-year prison sentence was 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 also granted a deferred fine arrangement requiring an immediate payment of R10,000, with the remaining balance to be paid in equal instalments over five years.
According to the Hawks, the case arose from the sale of a residential property in Finch Street, Southernwood, Mthatha, where the complainant had appointed estate agent Angel Engelrecht to facilitate the transaction for R780,000.
The complainant later appointed Gwebindlala’s law firm, Vuyani Gwebindlala Associates, to manage the transfer process and administer the trust account linked to the sale.
Investigators found that the purchaser initially deposited R50,000 into the attorney’s trust account before paying a further R730,000 after allegedly being informed that the full purchase price had to be secured before the transfer could proceed.
Although the property was successfully transferred to the purchaser in August 2008, the Hawks said Gwebindlala unlawfully withheld the proceeds owed to the seller.
When the complainant repeatedly demanded payment, Gwebindlala allegedly denied that the transfer had been completed.
However, after being confronted with proof that the property had already been transferred, he admitted to receiving and using the funds.
The matter was reported to the Hawks, whose investigation uncovered evidence that the complainant’s funds had allegedly been diverted into a Road Accident Fund matter without her consent or knowledge.
Gwebindlala was arrested on January 14, 2019, and was found guilty of theft on June 15, 2021. Sentencing was delayed for several years due to multiple postponements.
Eastern Cape Hawks provincial head Mboiki Obed Ngwenya commended the investigating team, describing the matter as “a grave abuse of fiduciary authority, a calculated violation of professional ethics, and a profound betrayal of the sacred trust reposed in officers of the court.”
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