East London funeral home owner charged with fraud

A prominent East London businessman and philanthropist is facing charges of more than 40 counts of fraud.

The 40-year-old man was arrested by the Eastern Cape police’s commercial crimes unit on Thursday.

He is expected to appear in the East London magistrate’s court on Friday.

The businessman, as well as the name of his company, cannot be named until his court appearance.

He was arrested after several cases against him were opened in East London, Mthatha and Gqeberha by people who complained they had been robbed of their funeral insurance premiums.

The complainants alleged they were not paid their claims by the funeral company owned by the man, with others complaining they were sent from pillar to post by the company.

Complainants claimed they found the funeral company’s premises closed when they went there wanting to inquire about their claims.

Complaints about the businessman’s funeral company started in 2020, with many blowing the whistle on fears that the company was playing cat and mouse when it came to payment of claims.

Others complained the company premises were closed and the phones were never answered.

This left grieving families in the lurch, with many having to take out loans to bury their loved ones.

“The company just disappeared and was nowhere to be found when we went to inquire about the premiums,” said one complainant.

Another said: “If you are lucky enough to have your phone answered, you will be told that the owner is nowhere to be found.”

A third complainant said the company disappeared without any communication to its clients.

“We have been paying the premiums for many years. What happened was a gross violation of our rights.”

The fourth complainant said he had heard of the funeral company in an advertisement on the radio and joined it.

He paid the premiums and when he went to inquire at the company’s offices in East London, he was told the owner had disappeared.

The businessman was recently nominated as a Local Hero for donating food and helping people start up their own businesses.

Provincial police spokesperson Brigadier Thembinkosi Kinana was not available for comment at the time of going to print on Thursday.