MLS pens banks on levies, fees
Malawi Law Society (MLS) has called on commercial banks to submit information related to work their lawyers do to determine levies, fees or fines payable to the lawyers’ body.
In a letter date July 1 2021 addressed to the banks, MLS said banks employ lawyers who do restricted work to the legal profession and they are, therefore, expected to remit levies, fees or fines to the law society under the Legal Education and Legal Practitioners Act.
Bankers Association of Malawi (BAM) has since confirmed receiving the letter, saying it will accordingly respond.
In the letter, MLS fears failure by the banks to pay the levies and fees could affect the legal profession and disrupt the society’s operations of ensuring high standards of legal practice in the country.
In an interview on Thursday, MLS secretary Chrispin Ngunde confirmed that bank representatives have contacted the law society on the matter.
He said: “However, we are yet to receive the information we requested, except from one bank. ”
BAM chief executive officer (CEO) Lyness Nkungula said the matter is being handled and her institution will respond to the letter, signed by MLS chief executive officer (CEO) Mzati Mbeko.
In the letter, MLS says their random checks with the Lands Department following a public notice they issued earlier suggested that the banks may not be complying with Section 31(1)(c) of the Legal Education and Legal Practitioners Act.
Reads the letter in part: “Further, the society notes that non-compliance with Section 31 of the Act also leads to breach of Section 84 and compromises the effect of Section 83 of the said Act in that the levy, fees or fines which would ordinarily be payable do not reach the Malawi Law Society.”
MLS said under Section 12(1)(a) and (f) of the Constitution, as read with the Legal Education and Legal Practitioners Act Section 64, the society has the responsibility of ensuring the rule of law and professionalism for the general good of the country.
To regularise the anomalies from the effective date of the Act and to ensure sustained compliance in future, MLS has asked the banks to provide information in respect of their dealings concerning registration of charges and discharges from January 1 2019 to the date of their feedback.
When contacted, National Bank of Malawi (NBM) marketing and corporate affairs manager Akossa Hiwa said they received the MLS communication to their bank.
She said: “We have looked at the communication critically and we have noticed that MLS is not accusing NBM plc of any wrongdoing, but it is on fact-finding mission.
“NBM plc, being a law-abiding corporate institution, is fully complying with the Act and will provide the sought information to MLS within the time frame that they have indicated.”
Standard Bank Group head of brand and marketing Thoko Unyolo, in a response to our questionnaire, also said the bank is complying with the provisions of the Act. FDH Bank spokesperson Lorraine Chikhula said BAM and the Corporate Lawyers Association are best placed to comment on the matter.
