Eastern Cape Funeral Director Jailed for Stealing RAF Payout

A funeral director in the Eastern Cape has been sentenced to 10 years’ direct imprisonment for stealing and laundering part of a Road Accident Fund payout intended for an 82-year-old woman. The sentencing took place in the Komani Regional Court after the National Prosecuting Authority said the accused was convicted of theft and money laundering involving R500,000.

The convicted man, Thanduxolo Poswa, is a funeral director from Tlokoeng, formerly known as Mount Fletcher. He and three co-accused, Patricia Sekhosana, Nomandla Papiyana and Sijadu Poswa, all pleaded guilty in the matter and each received wholly suspended five-year sentences. The court found that Poswa played the leading role in the theft and imposed seven years for theft and a further three years for money laundering.

The case stems from a Road Accident Fund claim lodged by L. Mtiya & Company Attorneys on behalf of Desemelo Sekhosana, whose daughter died in a motor vehicle accident. The RAF settled the claim for R1.4 million, with about R1.1 million due to the claimant after legal fees. However, the claimant’s bank account was inactive, and it was agreed by family members and attorneys that the money be paid into Patricia Sekhosana’s account.

After the payout was received, Patricia Sekhosana transferred portions of the funds to the other accused. Poswa received R500,000, the largest share of the money, and used it to build a house. The claimant eventually received only R405,000 from the settlement. Evidence before court showed that Poswa later pressured Sekhosana to transfer even more funds to him after he learned the payment had been made.

Poswa told the court that the money he received was a gift and payment for vehicle expenses, but the court rejected that explanation and found him guilty. Prosecutors argued that the money was intended to support the deceased woman’s minor children and said a much harsher sentence, including a 15-year minimum term, was justified.

The State also told the court that recovering the stolen funds would likely be difficult because the house built with the money stands on communal land. Magistrate Nosisa Ngcongolo rejected Poswa’s request to repay the money in instalments or to transfer ownership of the house as an alternative to prison.

Acting Director of Public Prosecutions Samkelo Mtwana welcomed the conviction and sentencing, praising both the prosecutors and investigators involved in the case. He said the outcome showed the justice system’s ability to deal with white-collar crime and to protect vulnerable victims from exploitation.