7 December 2012

South Africa: Trial of Three Former Civil Servants Alleged to Have Defrauded Department of Labour Resumes With Testimony From State Witness

press release

The trial of three former employees of the Department of Labour's (DoL) Compensation Fund (CF) alleged to have defrauded the department of R476 150,58 is to resume on Monday (December 10) in the Pretoria Magistrate's Court with further cross examination of State witness.

Maxwell Ramaphosa, Samuel Elliot Mfeleng and Kgabo Johanna Methi are alleged to have colluded with self-confessed fraudster Jones Modau, a physiotherapist based in Rustenburg, North West to defraud the Department of Labour.

Modau made a U-turn and confessed for his part in 'milking' the department.

On November 1, Modau was handed multiple suspended sentences in the Pretoria Specialised Commercial Crimes Court for defrauding the Department of Labour's (DoL) Compensation Fund (CF).

The physiotherapist had pleaded guilty in March to three counts of fraud and 14 counts of money laundering involving about R476 150, 58. Modau was sentenced to three years correctional supervision (house arrest), but allowed to go to work and church. On the same charge of fraud, he was also handed a further three years - suspended for five years - on condition that he does not commit any theft or fraud during the next five years.

On a charge of money laundering, he was sentenced to two-years suspended for a five-year period.

During his sentencing Modau was out on a warning. In their (Ramaphosa, Mfeleng and Methi) last appearance in October, a private investigator testified in Court that through their alleged fraud activities' the alleged fraud accused left no paper trail to reconcile the inflated claims that were handled by them during their course of duty.

The trio faces similar charges as Modau. Ramaphosa, Mfeleng and Methi are accused of acting in furtherance of common purpose after recruiting Modau to submit his practice number for fraudulent payments to be made to his account from DoL's Compensation Fund. Modau is alleged to have not rendered any service to DoL's Compensation Fund.

They have pleaded not guilty and are out on warning. Meanwhile, Ramaphosa and Mfeleng are also ensnared in two other alleged fraud cases currently on trial. The Compensation Fund is a public entity of the Department of Labour. The Fund provides cover to workers injured or disabled at work or/for diseases sustained from the hazardous work environment.

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