Eastern Cape Woman Sentenced for Death Benefit Fraud

In a landmark case highlighting the vigilance of financial institutions and law enforcement agencies, the Mthatha Specialised Commercial Crimes Court passed judgement on Lindeka Patricia Ntlokwinendaba, with a hefty fine for fraudulently claiming death benefits in the Eastern Cape.

The 41-year-old Ntlokwinendaba was convicted on 15 May 2024 after an extensive investigation led by the Mthatha Serious Commercial Crime Investigation (SCCI) unit of the Hawks, in partnership with the National Prosecuting Authority (NPA) and Old Mutual insurance company. Her deceitful activities came to light following her arrest on 13 July 2021.

Ntlokwinendaba's criminal actions involved insuring an individual, Mfunxuse Golden Mvinqi, under the pretense that he was her stepfather; Mvinqi was, in fact, unrelated to her. After Mvinqi's death on 21 June 2018, Ntlokwinendaba lodged claims for the death benefits, falsely asserting herself as the step-daughter of the deceased. Old Mutual was beguiled into compensating her with R20,000.

However, sharp-eyed auditors at Old Mutual uncovered the fraud when they noticed discrepancies in Ntlokwinendaba’s relationship with the deceased, unveiling that she was merely a friend to the deceased’s niece. Additionally, they found that Ntlokwinendaba had not contributed financially to Mvinqi's funeral expenses.

With evidence of the fraud brought to their attention in November 2020, the Hawks undertook an exhaustive probe, resulting in Ntlokwinendaba's arrest in July 2021. Despite being released on a warning on her first court appearance, she had to face the consequences of her successive court hearings.

Following a series of remands for the acquisition of a Social Worker’s pre-sentence report, Ntlokwinendaba was sentenced on 17 July 2024. The Court ordered her to pay a fine of R200,000. Failure to pay this fine would result in a 15-month direct imprisonment sentence.

The case was a testimonial of inter-agency collaboration, with Major General Ngwenya, the Provincial Head, applauding the SCCI Hawks' team for their masterful use of detection skills that led to the successful conviction and sentencing of Ntlokwinendaba.

The sentencing serves as a stern warning against insurance fraud, proving that sophisticated investigation techniques and cross-institutional cooperation are highly effective in apprehending and prosecuting individuals involved in such deceitful practices.