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- Lawyer Barnabas Xulu had his bank accounts frozen by court order.
- A settlement agreement is the subject of a dispute between Xulu and the Department of the Environment, Forestry and Fisheries.
- The department obtained an order to freeze their bank accounts and insured a home and Porsche until the matter is resolved.
The Western Cape Superior Court ordered some of the bank accounts of well-known attorney Barnabas Xulu to be frozen in a long battle with the Department of the Environment, Forestry and Fisheries over legal fees paid by the department.
Xulu has done legal work for the department, but the validity of the Service Level Agreement (SLA) and a resolution agreement have been the subject of a long-running dispute and infighting, which has spread to the higher court.
It included fees for handling a complex US $ 7.5 million restitution payment agreement between US authorities, foreign banking institutions and the National Prosecution Authority (NPA) for a convicted lobster smuggler.
Xulu’s services were to be terminated in August 2018, except for the US, but the Department of Agriculture, Forestry and Fisheries (before the department was separated into the Department of Environment, Forestry and Fisheries) and the Treasury agreed to settle for an amount of R20 million.
Problems then escalated over whether the deal was valid or not.
The parties have been in a battle over who owes whom and whether to pay the money back.
An order in favor of both departments, dated October 12, notified that Xulu and the company – Barnabus Xulu & Partners Incorporated – had to explain the reasons why it should not pay R20 242 272. 90.
Meanwhile, Incovision (Pty) Ltd, Setlacorp (Pty) Ltd and Xulu were ordered not to allow the transfer, dissipation or withdrawal of funds from their accounts.
READ | Lead lawyer Barnabas Xulu is ordered to return 20 million rand in legal fees to the Department of Fisheries
This includes money received or to be received in the future without permission from the department. Additionally, First National Bank and Investec Bank were also prohibited from allowing the transfer, dissipation, or withdrawal of funds from the three accounts, or from any entity over which Xulu has control.
Incovision and Xulu were intercepted by property on Sheffield Beach in KwaZulu-Natal. Property assets must be inventoried and assets cannot be withdrawn from the property.
The area Sheriff was instructed to enter the property for inventory, taking a locksmith, if necessary, or forcibly, and Tracker’s services would be used to track down and secure the Porsche.
Xulu told News24 that it involves paying restitution and services rendered to return the money to the South African government, to offset the loss of the country’s marine resources in the lobster case.
This settlement also involved a carefully negotiated settlement with the accused parties in the US and banks in other countries.
“[The] The question is, does it have to be done for free or [does] the state has to pay for this sweat, “Xulu told News24 in a WhatsApp message when asked for a comment.
“Bxi (Xulu) is being exposed as a criminal, not to be arrested, but victimized,” he said.
First National Bank and Investec Bank must also provide department bank statements held by Incovision, Setlacorp and Xulu between July 1, 2019 and the date of the order.
The order stands until the 20 million rand matter is heard in full.
In January, Xulu was ordered to return the money in April.
This also comes after a request from the department on October 6, in which Xulu was to have paid interest at the close of business on October 5 of R3.4 million and R380,000.
A subsequent order on October 15 also prevented the transfer of shares related to the Sheffield property.
The orders were entered in the Western Cape Superior Court, where Xulu, coincidentally, has also represented Chief Justice John Hlophe in matters that are before the Judicial Service Commission.
