“The previous government should be held accountable for disbursing such high fees to some privileged lawyers”

Legal Fees and Political Connections: A Growing Concern in Mauritius

By Lex

In some countries, legal fees charged by barristers and solicitors are exorbitantly high, often to an unreasonable extent. This issue is particularly pronounced in nations where lawyers and solicitors maintain close ties with, or enjoy the patronage of, the political leadership. These legal professionals are frequently the primary beneficiaries of lucrative contracts for government-related legal work, including services for parastatal bodies and state-owned enterprises.

Revelations in Mauritius regarding legal fees charged under the previous government for advice or other legal assistance provided to the State Trading Corporation (STC), the former Commissioner of Police, and the Gambling Regulatory Authority and other bodies suggest they may have been excessively high. Or are such fees simply considered the norm in the legal profession?  It would be remiss not to acknowledge that this contentious issue predates the previous government. However, it appears to have taken on a new dimension over the past 5 to 10 years.

Lex delves into the complexities of this vexing issue.

* Several concerning issues arise regarding the reliance of various government institutions, including parastatal bodies and state-owned enterprises, on external legal services – both locally and from the UK. These include seemingly exorbitant fees, the repeated appointment of the same legal professionals on a retainer basis or for litigation purposes, the retention of private legal counsels for public officials, etc. What are we to make of all this?

Any individual or institution has the right to retain a legal adviser, with fees discussed on a private basis. However, it is shocking to see the exorbitant fees paid to private lawyers by the STC, a parastatal body managed with public funds. The public had no say in allocating such high fees to private lawyers.

There is also a perception that some individuals closely associated with the previous regime were often retained, with notably high fees allocated to them. Was proper authorization from those managing the funds obtained? Who was responsible for selecting those legal advisers? All of this will need to be thoroughly investigated.

* High fees seem to have become the new norm, based on revelations about the charges by private lawyers to parastatal and State-Owned Enterprises. Is this acceptable?

As a rule, a government or semi-governmental department would first consult the State Law Office for legal advice and representation. State Law Officers do not require additional fees to represent the government, though reasonable fees may apply when representing a parastatal body.

Did the STC or the GRA consult the State Law Office before allocating substantial fees to private lawyers? Who authorized the STC, the GRA and so many other parastatal bodies to spend public funds as if they were privately owned? Was the amount of the fees negotiated beforehand?

* Should the government implement term limits, rotation policies, and fee caps for lawyers working with state agencies to prevent excessive billing?

Any semi-public body is free to retain the services of a lawyer. However, it seems that under the previous regime, among the lot a select few close to the PMO were also chosen, and there is little doubt that the previous government should be held accountable for disbursing such high fees to some privileged lawyers.

It would be wise for the new government to issue clear directives to all public or semi-public departments, stipulating that the State Law Office should be contacted first. If the State Law Office is unable to act for the institution, then a private lawyer can be retained, with fees discussed and negotiated. Additionally, it would be beneficial to establish a pool of highly experienced private lawyers, with their services retained on a rotation basis.

* It would seem there is no existing mechanism to regulate the legal fees charged by barristers and solicitors. Are such mechanisms effective anyway?

There is no official mechanism in place, and it’s essentially a free-for-all when it comes to legal fees. A lawyer might charge a few thousand rupees for legal advice or a court appearance, while others may demand millions for the same service. This disparity remains a mystery.

Some lawyers are treated like demigods, believed to be able to win any case. However, the Betamax case, which also involved many foreign lawyers and law firms, has proven this belief to be unfounded.Read More… Become a Subscriber

Mauritius Times ePaper Friday 27 December 2024