Judges' free lunch 'like timeshare marketing'

Published Feb 3, 2006

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By Angela Quintal and Anél Powell

Chief Justice Pius Langa, as head of the country's judiciary, is to investigate why 51 Cape judges and their spouses attended a R25 000 Christmas lunch hosted by the marketing branch of Old Mutual Personal Financial Advisers (PFA).

"I need to listen to all sorts of representations. I am going to ask what happened. Then I will take it from there."

When asked whether he was concerned that the Cape High Court judges had opened themselves up to a potential conflict of interest, Langa said: "You are making me sit in judgment."

Noseweek reports in its latest edition that the judges attended the lunch at Old Mutual House in Bishopscourt in December. The tab, at R460 a head, was picked up by Old Mutual's marketing branch.

Forensic investigator David Klatzow - who is widely quoted in the Noseweek story - on Thursday said he was "outraged" that Supreme Court judges would be seen to be "snuggling up to Old Mutual".

He said the impartiality of judges in future litigation cases against Old Mutual would be viewed with suspicion.

"It leaves litigators wondering what else Old Mutual trotted out."

But Steven Bowey, Old Mutual's chief communications officer, on Thursday denied there was any ulterior motive and said the lunch had been one of several initiatives taken by the firm to interact with identified intellectual markets, including the Black Lawyers' Association, the Association of Black Accountants and the Afrikaanse Handelsinstituut.

"Events like these are part of our efforts to promote Old Mutual and its products to the professional markets."

He said the next step would be for advisers to "contact the judges individually and do one-on-one financial planning".

Although Old Mutual paid for the meal and drinks, no gifts were handed out, said Bowey. "We have nothing to hide."

He said the lunch was initiated and authorised by Gary Petersen, head of PFA Marketing.

"Our contact person on the Bench was Judge James Yekiso."

But Klatzow claimed on Thursday that the judges only found out after the meal that the event was hosted by Old Mutual.

"My sympathy is with the judges who were conned into going as it places them in an invidious position."

Klatzow added: "This was, on the part of Old Mutual, crass to say the least. They had a captive audience. In fact, this smacks of timeshare (marketing)."

He added: "The invite from Old Mutual shows a total lack of understanding of the judicial process", saying that "there is clearly a conflict of interest here".

Cape Judge President John Hlophe, who evidently usually paid for the judges' Christmas lunch from a "discretionary fund", did not return the Cape Times's telephone call nor answer his cellphone.

Judge Yekiso, who reportedly accepted the invitation on behalf of the judges, could also not be reached for comment.

Last year Justice Minister Brigitte Mabandla made it clear she would push ahead with a law that will force judges to disclose their financial interests.

The proposed amendments to the Judicial Services Commission Act provide for a judicial conduct and ethics committee and set up a complaints mechanism to deal with allegations of misconduct against judges.

While judges appear to have accepted that the complaints tribunal will also comprise lay people, they apparently still balk at the idea of disclosing their financial interests.

The committee will compile a code of conduct for judges, and maintain a register of their financial interests.

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