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Lawyer fined BND5,000 after failing due diligence

A lawyer was penalised for failure in his duty to uphold the interest of justice by the Law Society while representing a client in an investment contract.

Counsel Lieutenant Colonel (Rtd) Haji Harif bin Haji Ibrahim was fined BND5,000 by the Law Society Disciplinary Committee, as well as ordered to pay BND13,000 in cost after the disciplinary committee found that the counsel failed in his duty. The counsel also failed to advise an investor to seek independent legal advice during an investment contract, while knowing the investment was risky, according to the committee.

In June 2016, Haji Harif had prepared a capital funding agreement for Haji Razlizam bin Haji Mahal’s meat importing business. The deal was for a BND75,000 investment to be made by Pengiran Haji Abu Bakar into the business, with a promised return of BND175,000. The agreement was signed at the counsel’s office in June 26, 2016.

The terms of the agreement include provision for the original sum and the BND100,000 to be paid by Haji Razalizam within a month of signing, with provisions for extensions up to October 16, 2016.

No payments were made after some time, and it later came to light that a receiving order had been made against Haji Razalizam in 2008 in bankruptcy proceedings.

PHOTO: ENVATO

While the disciplinary committee believed the counsel to have failed in his duty, it was not enough to render him unfit to be an advocate and solicitor or to warrant disciplinary action.

Earlier, the counsel had contested the penalty, arguing that he had the right to apply to a judge against the decision if he was not satisfied with the findings.

However, the Law Society cited that a remedy through judicial review in the country is unavailable.

In a High Court judgement earlier this month, Judicial Commissioner Edward Timothy Starbuck Woolley found in favour of the Law Society and that the penalty from the committee’s findings, “…should have been an end to the matter”. – Fadley Faisel

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