Insurance system shortcomings leave ‘Murder for Money’ judge shocked
The growing trend of funeral policies being taken out by criminal operations for profit has found a home in Nelson Mandela Bay, and the trial of four alleged syndicate members raised serious concerns with the judge presiding over the matter.
A disturbing trend has emerged in Nelson Mandela Bay, where funeral policies are being purchased by criminal groups for financial gain. Acting Judge Dan Ngoqo expressed shock during a trial of four alleged members of a syndicate accused of murdering innocent victims to profit from insurance payouts. The judge questioned how someone could unknowingly be a target and have no recourse.
Forensic services manager for a major insurance company corroborated the judge's concerns, stating that anyone can fraudulently take out a funeral policy in another person's name without their knowledge. There are no central databases or easy verification methods to check if a policy exists in someone's name. To determine if a policy is registered, one must contact each provider individually.
The Eastern Cape has seen an alarming rise in insurance-related murders, with the police establishing a dedicated task force known as Murder for Money (MFM) to combat the issue. In this case, four individuals - Siyabulela Mbane, Ntobeko Msome (husband and wife), and Unathi Peter - are facing charges including murder, fraud, racketeering, and money laundering.
The accused are suspected of orchestrating a series of nine murders, with six victims having multiple funeral policies under their names linked to the defendants. Investigations into 29 funeral policies across various insurers revealed that the accused allegedly profited over R1.7 million, while R770,000 in payouts were later deemed irregular.
Forensic expert Nigel Meier of Sanlam testified on how funeral policies are registered and the red flags that could indicate fraudulent activity. For instance, if multiple people share coverage on a single policy or if a death occurs shortly after policy activation, the matter warrants investigation. Additionally, if a murder lacks a clear motive, suspicion arises that the death was orchestrated solely for the purpose of collecting the insurance payout.
Meier explained the mechanics of certain funeral policies, such as those provided by Sanlam and Capitec, which offered double or even triple payouts in the event of unnatural deaths. Mbane had taken out three separate policies on a victim, Malibongwe Vena, just before his death in August 2021. Sanlam policies allowed policyholders to insure non-blood relatives, while Capitec policies provided automatic double payouts for unnatural causes.
The judge's eyewitness account of the systemic problem highlights the dire need for stricter regulations and improved detection methods to prevent such heinous crimes.
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