EASTERN CAPE- Ntumekelo Mtsi (28) was handed 5 years direct imprisonment or a R5000 fine for charges of fraud alternatively Contravention of Financial Advisory Act by Mthatha Specialised Commercial Crime Court on 08 December 2021.
During the period between 01 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 any authorized underwriter.
Mtsi took over the business from his father who had since passed on and instructed his 523 clients to pay cash in his office so as to have cash readily available. Mtsi closed the business as soon as he realised that he could not meet the demands of the business.
The clients had nowhere to make the claims and then decided to lodge a complaint with Mthatha based Serious Commercial Crime Investigation team of the Hawks for probing which culminated 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 of cash to the value of more than R77 000-00.
After a couple of court appearances he was convicted on 07 December 2021 hence his sentencing on 08 December 2021. Mtsi was sentenced to 5 years direct imprisonment or R5000-00 fine.
The Provincial Head, Major General Mboiki Obed Ngwenya, commended the Mthatha Serious Commercial Crime Investigation team for the sterling conviction.
Source: South African Police Service