Tebogo Msimanga |
The Mthatha Specialised Commercial Crime Court on Wednesday sentenced Ntumekelo Mtsi (28) to 5 years direct imprisonment or R500 000 fine for charges of fraud.
Between 1 March 2019 and March 2020, Mtsi as the owner of the Abaxolisi funeral parlour situated around Tsomo area in the Eastern Cape, was operating the business without authority from Financial Sector Conduct Authorities nor being underwritten by an authorized underwriter.
Captain Yolisa Mgolodela of Eastern Cape Hawks said Mtsi took over the business from his father who had since passed on. He instructed his 523 clients to pay cash in his office to have cash readily available. Mtsi closed the business as soon as he realised that he could not meet the demands of the business.
Mgolodela further said the clients had nowhere to make the claims and then they complained to Mthatha based Hawks for investigation which resulted in the arrest of Mtsi on 30 September 2021.
“He made his first court appearance on the very same day at Mthatha Specialised Commercial Crime Court and was released on warning. The investigation revealed that the clients were prejudiced cash to the value of more than R77 000.”
After a couple of court appearances, he was convicted on 7 December 2021 hence his sentencing on 8 December 2021.The Provincial Head Major General Mboiki Obed Ngwenya commended the Mthatha Serious Commercial Crime Investigation team for the sterling job done.