Eastern Cape man in court for alleged half a million rand insurance scam

An Eastern Cape man accused of submitting a fraudulent insurance claim worth half a million rand has appeared in court. The appearance of Phikolomzi Mbunyuza, 36, comes after the Mthatha Hawk’s serious commercial crime investigation unit teamed up with the National Prosecuting Authority (NPA). He appeared in the Mthatha Specialised Commercial Crime Court on Thursday on charges of fraud and corruption and was released on warning.

The case was postponed to April 29 for pre-sentencing proceedings. “The case originated from a complaint lodged by OUTsurance company, which reported the alleged irregularities relating to an insurance policy entered with the accused on March 23 2019,” Hawks spokesperson W/O Ndiphiwe Mhlakuvana said. “In terms of the agreement, Mbunyuza reportedly insured several assets, including a Mercedes-Benz truck, a truck load body, a hydraulic crane and stock items, with a combined insured value of more than R500,000.” “The claim further alleged that the accident resulted in extensive loss of more than R500,000, including damages to the vehicle, equipment and the purported cargo,” Mhlakuvana said.

“Inconsistencies from the claim were picked up and the matter was handed over to the Hawks to investigate. “An investigation conducted by the Hawks revealed a significant inconsistency and misrepresentation in the claim submitted to OUTsurance. “Furthermore, it was discovered that no cargo or stock were being transported by the vehicle during the alleged incident, contrary to the assertions contained in the insurance claim.” The probe found that documentation presented by Mbunyuza was allegedly fabricated and devoid of any factual or contractual basis.