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The Malaysian Bar takes note of the recent comments made by the Director of the Commercial Crime Investigation Department (“CCID”) of the Royal Malaysia Police (Polis Diraja Malaysia, “PDRM”), Dato’ Sri Ramli Mohamed Yoosuf, pertaining to the total of RM19 million in losses that have been recorded in 22 criminal breach of trust cases involving lawyers.
Dato’ Sri Ramli highlighted a case involving a police report made by a company director who alleged that a law firm had acted fraudulently in a sale and purchase transaction of a piece of land in Plentong, Johor, resulting in a loss of RM4.8 million.
It is incumbent upon us to clarify that the said case, in fact, involves an individual who is not a lawyer. The Malaysian Bar lodged a police report regarding the individual concerned on 8 March 2024 at the Dang Wangi Police Station, and a statement pursuant to section 112 of the Criminal Procedure Code was recorded on the same day.
The Malaysian Bar recognises the efforts and strides made by CCID in dealing with crimes involving lawyers and persons impersonating lawyers. We had previously sought collaboration with PDRM for an effective means to deal with dishonesty involving the legal profession. Effective collaboration between us is essential if any headway is to be made. In this regard, we commend PDRM, and in particular Assistant Director of CCID, ACP Muhammad Tarmizi Awang, for being receptive to our proposal.
The Malaysian Bar is cognisant of the fact that lawyers occupy a position of trust by virtue of the duties that are carried out on behalf of their clients. It must be said that the majority of lawyers perform their duties honestly and in the best interest of their clients. However, it is an inescapable fact that bad hats exist in all positions of trust, including the legal profession. As a regulatory body, the Malaysian Bar is required to ensure that lawyers adhere to high professional and ethical standards. The Legal Profession Act 1976 (“LPA”) provides a number of means to combat professional misconduct, including dishonest acts by lawyers.
The Advocates and Solicitors Disciplinary Board, established in 1992 under section 93 of the LPA, plays an important role in combating dishonesty in the legal profession. Consisting of Board Members who perform their duties on a pro gratis basis, the Disciplinary Board adjudicates on complaints of professional misconduct by an advocate and solicitor.
If found guilty of misconduct, the Disciplinary Board may impose one or more of the following penalties or punishments:
- Reprimand or censure;
- Imposition of a fine not exceeding RM50,000;
- Suspension of the advocate and solicitor from practice for such period not exceeding five years; and
- Striking the advocate and solicitor off the Roll of Advocates and Solicitors.
In addition to the above penalty and punishment, the Disciplinary Board may, in appropriate cases, make an order of restitution to the advocate and solicitor of the complainant’s monies if it is established that such monies were or are held by the advocate and solicitor in his/her professional capacity, and the complainant is entitled to the return of such monies or part thereof. In 2023, the Disciplinary Board received 41 complaints pertaining to dishonest or fraudulent conduct in the discharge of duties amongst Members of the Malaysian Bar.
Additionally, the Compensation Fund, established in 1978, serves to alleviate losses incurred by the public due to the dishonest conduct of an advocate and solicitor. It is mandatory for every Member of the Malaysian Bar to make an annual contribution towards the fund. Individuals who have suffered losses as a result of such dishonesty can apply for grants from the Compensation Fund, subject to meeting specific criteria. Over the years, the fund has disbursed millions of ringgits to affected individuals.
Even with these various mechanisms in our arsenal, more is needed to combat dishonesty and uphold integrity in the legal profession. The LPA is in dire need of reform, and we hope to introduce amendments to the Act that will, among others, better equip us with the means to deal with dishonesty in the profession in the current landscape. Our efforts in this regard are ongoing and require the support and cooperation of the Government.
While Dato’ Sri Ramli’s comments express a genuine concern to overcome this serious issue, success does not begin and end with the Malaysian Bar. In our fight against dishonesty in the legal profession, the tapestry of success is woven with threads of collaboration.
Mohamad Ezri b Abdul Wahab
President
Malaysian Bar
29 May 2024