A funeral director has received a ten-year prison sentence for the theft of a Road Accident Fund (RAF) payout intended for an elderly woman. Thanduxolo Poswa, aged 56, was convicted for stealing R500,000 and laundering the funds. The sentencing took place in the Komani Regional Court, as confirmed by the National Prosecuting Authority (NPA) in the Eastern Cape.
Details of the Case
The significant payout originated from a claim lodged by L. Mtiya & Company Attorneys on behalf of Desemelo Sekhosana. This claim was made following the tragic death of Sekhosana’s daughter in a motor vehicle accident. The RAF settled the claim for R1.4 million, yet after legal fees, approximately R1.1 million was remaining for the claimant.
Due to the claimant’s bank account being inactive, family members and their attorneys agreed to have the funds deposited into Patricia Sekhosana’s account. Poswa, along with his co-accused, received a substantial portion of the payout.
Distribution of Funds
- Poswa received R500,000, the largest share of the payout, which he used to construct a house.
- The claimant ultimately received only R405,000 from the settlement.
- Patricia Sekhosana subsequently transferred portions of the funds among the accused individuals.
Legal Proceedings
During the trial, evidence revealed that Poswa exerted pressure on Sekhosana to provide him with additional money, claiming that the payments were for vehicle expenses. However, the court dismissed this explanation, leading to his conviction.
The State strongly argued for a tougher sentence, stating that the funds were supposed to support the deceased’s minor children. Prosecutors urged for a minimum sentence of 15 years, emphasizing that recovery of the stolen funds was unlikely given that Poswa built his house on communal land.
Sentencing Outcome
Magistrate Nosisa Ngcongolo ultimately sentenced Poswa to seven years for theft and an additional three years for money laundering. His request to repay the stolen funds in installments or transfer the house’s ownership was rejected.
Samkelo Mtwana, Acting Director of Public Prosecutions, commended the legal team for their work. He noted that this case demonstrates the justice system’s ability to address white-collar crime and protect vulnerable individuals.
