Unscrupulous funeral undertaker sentenced to R60,000 fine

The Vhembe Funeral Practitioners Association has issued a stern warning to funeral practitioners who fail to adhere to the law, stating that they may end up in prison. This warning follows a recent case in which a funeral-parlour owner was fined R60,000 for violating sections of the Financial Advisory and Intermediary Services (FAIS) Act.

Last week, the Giyani Specialised Commercial Crimes Court sentenced ET Funeral Scheme CC to fines totalling R10,000 for fraud and R5,000 for contravening sections of the FAIS Act. Additionally, the funeral-parlour owner, Ms Tondani Merilyn Netshakhuma (48), was sentenced to a fine of R50,000 or six years' imprisonment for fraud, and a further R10,000 fine or three years' imprisonment for violating the same Act.

Ms Mashudu Malabi Dzhangi, the NPA’s regional spokesperson, stated that both the company and Netshakhuma had pleaded guilty, admitting that between 2005 and 2019, they had operated a funeral scheme at Hamakuya outside Thohoyandou without the required registration as a short-term insurer.

“A complainant, Ms Ndidzulafhi Tshikororo, was defrauded of R14,875 after being informed that, due to amended rules, the ET Funeral Scheme could no longer provide cash payouts to policyholders. Tshikororo had paid premiums from 2005 until 2019, expecting a R5,000 payout that was never delivered,” she said.

During sentencing, Senior State Advocate Martin Molokwane argued for a substantial fine and imprisonment, noting that Netshakhuma had had ample opportunity to cease her fraudulent activities but continued to exploit vulnerable community members.

The sentence has been welcomed by the Vhembe Funeral Practitioners Association. The association’s spokesperson, Mr Robert Mangenge, warned that others who robbed their clients might face similar consequences.

“We are in the funeral business and should be truthful and compassionate to bereaved families. We are becoming increasingly concerned because fly-by-night funeral undertakers are proliferating in our area. These individuals promise clients the world but vanish when it comes to fulfilling their promises. They should know that they will end up in jail one day. To our dear clients, we urge you to double-check whether your service provider is registered with the Financial Services Board (FSB),” he said.

Date:19 September 2024

By: Elmon Tshikhudo

Elmon Tshikhudo started off as a photographer. He developed an interest in writing and started submitting articles to local as well as national publications. He became part of the Limpopo Mirror family in 2005 and was a permanent part of the news team until 2019. He currently writes on a freelance basis, covering human rights issues, court news and entertainment.

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