Tondani Merilyn Netshakhuma was found guilty for fraud and sentenced nine imprisonment or a R60 000 fine.
A devious funeral undertaker in Limpopo has been found guilty of fraud for swindling bereaved families of their policy funds.
Tondani Merilyn Netshakhuma, 48 was found guilty by the Giyani Specialised Commercial Crimes Court for contravening Section 7(1) of the Financial Advisory and Intermediary Services Act 37 of 2002.
Netshakhuma, who is the director of the ET Funeral Scheme cc, has been sentenced to six years imprisonment or a fine of R50,000 and a further R10,000 fine or three years’ imprisonment for contravening the same Act.
The combined sentence for Netshakhuma amounts to R60, 000 or nine years of imprisonment.
She pleaded guilty, admitting that between 2005 and 2019, she operated a funeral scheme in Ha-Makuya village near Thohoyandou in the former Venda homeland without the required registration as a short-term insurer, as stipulated by the Financial Advisory and Intermediary Services Act.
One of the complainants Ndidzulafhi Tshikororo was reportedly defrauded of R14,875 00 when she was told that, due to amended rules, the funeral scheme could no longer provide cash payouts to policyholders.
Tshikororo had paid premiums from 2005 until 2019, expecting a R5, 000 payout that was never delivered.
During sentencing, Senior State Advocate Martin Molokwane argued for a substantial fine and imprisonment, pointing out that Netshakhuma had ample time to halt her fraudulent activities but continued to exploit vulnerable community members.
The prosecution emphasised the severe breach of trust displayed by both Netshakhuma and her company.
The court, swayed by the state’s arguments, imposed the fines and potential prison terms.
According to the Directorate for Priority Crime Investigation, in September 2022, Netshakhuma allegedly refused to pay her clients’ claims for their funeral benefits and informed them that policies have changed and the company does no longer pay for burial money but issue out cash.
She rescinded on her promise.
Warrant Officer, Lethunya Mmuroa, the provincial spokesperson for the Hawks, said the matter was reported to them where it was established that Netshakhuma failed to register the company with the underwriter.
“A case docket of fraud was opened at Thohoyandou police station and transferred to Polokwane-based Hawks Serious Commercial Crime for further investigation. The accused was traced, arrested and taken to court” said Mmuroa.
Advocate Ivy Thenga of the Director of Public Prosecutions, said she hopes this case serves as a deterrent to those who seek to exploit vulnerable communities.