Thanduxolo Poswa Sentenced in Mount Fletcher, Eastern Cape RAF Payout Theft Case
A well-known funeral director from Tlokoeng near Mount Fletcher in the Eastern Cape has been sentenced to 10 years’ direct imprisonment after being found guilty of stealing and laundering a Road Accident Fund (RAF) payout intended for an elderly woman.
Thanduxolo Poswa, 56, was convicted and sentenced by the Komani Regional Court after evidence revealed that he received R500,000 from a compensation payout meant for 82-year-old Desemelo Sekhosana. The money formed part of a larger RAF settlement awarded following the death of Sekhosana’s daughter in a motor vehicle accident.
The case has drawn attention because the victim was an elderly woman who was left with only a fraction of the compensation intended to support her family and her late daughter’s children.
How the Mount Fletcher RAF Payout Was Stolen by Thanduxolo Poswa
According to the National Prosecuting Authority (NPA), the RAF claim was lodged by L. Mtiya & Company Attorneys on behalf of Desemelo Sekhosana following the death of her daughter in a road accident.
The Road Accident Fund settled the claim for approximately R1.4 million. After legal fees were deducted, about R1.1 million remained due to Sekhosana.
However, complications arose when it was discovered that the elderly claimant’s bank account was no longer operational. Family members and attorneys subsequently agreed that the funds would be paid into the bank account of Patricia Sekhosana.
Once the money was deposited, a series of transfers began moving portions of the payout into the accounts of several individuals.
Court proceedings revealed that the funds were distributed among four people, with Thanduxolo Poswa receiving the largest share of R500,000.
The claimant ultimately received only R405,000 from the amount that should have been available to her.
The NPA said the money was intended to assist the family following the loss of a loved one and to help support the deceased woman’s minor children.
Court Finds Funeral Director Played Leading Role
During the trial, prosecutors presented evidence showing that Thanduxolo Poswa played a central role in the theft and subsequent laundering of the funds.
The court heard that Thanduxolo Poswa, who is also a former soldier, allegedly pressured Patricia Sekhosana into transferring the money into his account after learning about the RAF payout through another accused person, Nomandla Papiyana.
In his defence, Thanduxolo Poswa denied wrongdoing and claimed that the money had been given to him as a gift. He further argued that some of the funds were related to the payment for vehicle servicing and the purchase of new tyres.
The court rejected this explanation after considering the evidence presented during the proceedings.
Magistrate Nosisa Ngcongolo found Thanduxolo Poswa guilty and sentenced him to seven years’ imprisonment for theft involving R500,000 and an additional three years for laundering the proceeds of crime.
The sentences resulted in a total effective prison term of 10 years.
Three co-accused, Patricia Sekhosana, Nomandla Papiyana and Sijadu Poswa, pleaded guilty to their roles in the matter. They each received wholly suspended five-year prison sentences.
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Why the Court Rejected Efforts to Recover the Money
During sentencing proceedings, State Advocate Nkosinathi Faxi argued that the case warranted a severe punishment because of the impact on a vulnerable victim and her family.
The prosecution submitted that the stolen funds were intended to benefit the deceased woman’s children and should never have been diverted for personal use.
The State also requested the prescribed minimum sentence of 15 years’ imprisonment.
Evidence before the court showed that Poswa used the R500,000 he received to build a house.
However, prosecutors explained that recovering the asset through the NPA’s Asset Forfeiture Unit would be difficult because the property is situated on communal land.
The court also considered Thanduxolo Poswa’s proposal to repay the money in instalments or transfer ownership of the house to the claimant.
Magistrate Ngcongolo rejected those proposals and proceeded with the sentence.
The ruling highlighted the seriousness with which courts view the theft of compensation intended for vulnerable beneficiaries.
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NPA Welcomes Conviction and Sentence
Following the sentencing, the NPA welcomed the outcome and praised the work of the prosecution and investigators involved in the matter.
Acting Director of Public Prosecutions for the Eastern Cape, Advocate Samkelo Mtwana, said the conviction demonstrated the effectiveness of cooperation within the criminal justice system.
According to the NPA, the successful prosecution sends a strong message that individuals who exploit vulnerable people for financial gain will be held accountable.
The authority also said the case highlights its ongoing commitment to combating financial crimes and protecting victims from exploitation.
The sentence brings an end to a lengthy legal process that centred on a payout meant to assist a grieving family after a fatal road accident.
For Desemelo Sekhosana and her family, the court’s decision represents a measure of justice after a significant portion of the compensation intended for their benefit was unlawfully diverted.
The NPA has indicated that it remains committed to pursuing similar cases involving fraud, theft and money laundering, particularly where vulnerable victims are affected.
