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Six fraudsters confessed to rerouting Compensation Fund payments to personal bank accounts through fake medical providers.
Picture: iStock
A group known as the ‘Capitec Group’ has pleaded guilty to assisting a scam that involved redirecting payments from the Compensation Fund (CF) into personal bank accounts.
‘Capitec Group’ has no affiliation with Capitec Bank South Africa.
The Pretoria Specialised Commercial Crimes Court has found six accused guilty of contravening Section 5 of the Prevention of Organised Crime Act (POCA), Act 121 of 1998, for assisting another person to benefit from the proceeds of unlawful activities.
The six accused, Phumzile Ivy Ngubane (48), Thuleleni Joyce Ngubane (44), Delisile Constance Ngubane (62), Busisiwe Brenda Masango (43), Gunther Nsibande (51) and Nhlanhla Mkhabela, pleaded guilty on Tuesday.
‘Capitec Group’ redirected Compensation Fund payouts into their accounts
The accused, dubbed the ‘Capitec Group’, were part of what is believed to be a syndicate that embezzled funds from the CF.
The Compensation Fund is a public entity under the administration of the Department of Labour. The CF offers cover for workers who sustain injuries and/or contract illnesses at work.
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“The syndicate made misrepresentations to the Compensation Fund, which gave rise to the fund making payments to entities purporting to be medical aid providers supposedly to the benefit of legitimate claimants,” Hawks spokesperson Warrant Officer Thatohatsi Mavimbela said.
As a result, the fund deposited money into the bank accounts of the medical service providers, using the bank account details recorded in the fund’s system.
Investigations further revealed that the suspects owned the bank accounts used to receive the payments and that these medical service providers were not registered in accordance with the regulations.
Sentencing in November
The matter has been postponed to 3 November 2025 for sentencing.
This is not the first time criminals have defrauded the fund by altering the personal details of claimants and redirecting payments to assumed accounts.
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In December 2018, three former CF employees—Maxwell Ramaphosa, Samuel Mfeleng, and Kgabo Johanna Methi—were sentenced for defrauding the fund of R476 150.
Ramaphosa and Mfeleng received 12-year sentences, while Methi got six years.
The trio, who colluded with physiotherapist Dr Jones Modau to create fictitious claims, were convicted of fraud and money laundering.
