Chair of legal firm in probe

The Cape Law Society will hold a formal disciplinary inquiry into claims that Dines Gihwala, head of the Independent Regulatory Board for Auditors (IRBA), acted improperly and misappropriated cash belonging to Swiss investors.

This is a new twist in a three-year tussle between Gihwala and former friend, Switzerland-based Karim Mawji.

Gihwala chairs one of the country's biggest law firms, Cliffe Dekker Hofmeyr, and has represented heavyweights such as Trevor Manuel. As the IRBA chair, he is also tasked with ensuring auditors do not take short cuts that harm investors.

But Mawji claims his Swiss company, Montague Goldsmith, gave R14-million to Gihwala to invest in black empowerment deals for two JSE-listed companies, Scharrig Mining and property fund Spearhead.

Mawji claims that at least R3-million of this is unaccounted for , while his investors remain "out of pocket" and without the profit they expected.

"I've asked Gihwala, and the courts have asked Gihwala, to account for where this money has gone, and show that he hasn't made off with this cash, but he still hasn't given a proper account," said Mawji.

Besides the court case, Mawji also asked the Cape Law Society to probe his claims of unprofessional conduct. The society has now written back, directing that "the matter be referred to a formal disciplinary inquiry".

This week, Gihwala said he had "nothing to hide".

"I would welcome this inquiry so there's a proper due process, and let Mr Mawji come to the Law Society and explain what I've done, and prove I've stolen any of his money," he said.

Last month the High Court ordered Gihwala to account for cash given to him to invest in Scharrig - a ruling Gihwala said was "fatally flawed".