2 Dec 2009

Law Society calls for details on legal aid cheats

6:19 am on 2 December 2009

The Law Society says it wants detailed information on lawyers who are cheating the legal aid system so it can take action against them.

The comments follow a damning report by Dame Margaret Bazley, which was discussed by Cabinet on Monday and led to the resignation of four members of the Legal Services Agency, which oversees legal aid.

The report said up to 200 lawyers could be rorting the system by extending cases and asking for top-up fees over and above their legal aid payments.

Law Society president John Marshall QC, says the present situation maligns lawyers of competence and integrity.

He says the allegations made were anecdotal and he will visit the Manukau District Court on Wednesday to find out more.

"I want to obtain information about some of the practices that Dame Margaret Bazley says are going on in that court.

"I want people to provide information so that we can deal with those members who are incompetent and are engaging in these unacceptable practices."

Mr Marshall says lawyers who know about corrupt practices should pass the information on to the society's complaints service.

Cases could then be dealt with through a formal complaints process, and if proven, could lead to lawyers being struck off.

Agency members not incompetent - minister

The Government says the people who resigned from the Legal Services Agency did not do a bad job.

Justice Minister Simon Power says Cabinet agreed the agency would be moved into the Ministry of Justice.

He says Dame Margaret indicated that the agency had been paralysed by difficult relationships and the legal profession's control over the legal aid system.

Mr Power asked each of the members of the agency if they believed they had the skills to work in the post-report environment. He subsequently accepted the resignations of four members, including that of the chair, Carol Durbin.

On Tuesday Mr Power told Morning Report the resignations will improve how the system operates.

"In the environment they were in, I'm not suggesting they didn't do a good job.

"I'm simply saying the environment has now changed significantly and a new set of skills, and a new set of experiences is needed to take us through what Dame Margaret Bazley has described as essentially a dysfunctional relationship between the agency and the legal profession."

Work is now underway to bring the agency into the Ministry of Justice.