Despatch woman’s stabbing latest in series of ‘Money-for-Murder’ schemes

A month ago, Nelson Mandela Bay police were called to a scene where a woman’s body was found on a gravel road on the outskirts of Despatch. She had suffered multiple stab wounds.

The victim was later identified as 56-year-old Cynthia Nowizana Mali, and while no murder suspects have been arrested, the police investigation led to the arrest of five women – all linked to the victim by the fraudulent insurance claim they submitted in the days following the murder.

All indications are that Mali could be the latest victim in the growing trend of murders for the sole purpose of benefiting from fraudulent funeral policies.

This growing concern led to the police establishing a specialised Money-for-Murder task team, currently investigating several organised crime syndicates and upwards of 50 murders for insurance payouts in Nelson Mandela Bay alone.

Read more: Eastern Cape ‘hit’ murders for insurance claims spiral to 50

On 18 January, a Sunday evening, passers-by were walking along a gravel road in the Mahashe area near Despatch when they came across Mali’s body. Initial police reports indicated that members of the Despatch police station were contacted shortly before 9pm and responded immediately.

“Mahashe’s body was found on a gravel road. She had sustained multiple stab wounds to the neck and upper body,” police spokesperson Captain Andre Beetge said.

While information about the incident was sparse, the police urged the community to come forward with information.

Series of insurance claims

Not long after, the investigation raised several red flags and led to the discovery of a series of claims on insurance policies taken out on Mali.

On 10 February, Despatch detectives executed arrest warrants for Zizipho Foster, 26, Thandiswa Mama, 40, Yanga Mfengu, 23, Pholisa Luguxa, 46, and Nomaqadi Koli, 40.

All five women face charges of fraud after they allegedly submitted irregular claims to insurance companies after Mali’s murder.

The five accused made their first court appearance in the Kariega Magistrates’ Court on 11 February. They returned to court on Tuesday, where their formal bail proceedings got under way.

None of the accused has been linked to the actual murder – that investigation is still active.

Reports indicated that one of the accused is employed at the court where she and her co-accused appeared.

While the case is in its early stages, if convicted, the accused could face up to five years behind bars after a precedent-setting sentencing in the same court late last year. In that trial, 53-year-old Monelwa Gwane was sentenced to an effective five years behind bars after she was convicted of three counts of fraud.

She took out multiple funeral policies on Ayanda Mvemve, who was stabbed to death in Makhanda in March 2022.

Gwane was the sole beneficiary of three policies that were taken out in the four months leading up to Mvemve’s death. In each transaction, she lied about her relationship with Mvemve.

Read more: Funeral policy fraudster jailed, setting Murder for Money investigations precedent

In accordance with the law, a life insurance or funeral policy can be taken out only by a direct family member.

In a similar investigation, a Nxuba resident is facing dozens of charges for alleged fraudulent insurance policies after her arrest in December.

Nomonde Christmas, 59, was arrested on 34 charges, where she allegedly claimed on funeral policies for deceased people in her neighbourhood, and lied about being related to them.

During her bail proceedings in the town’s magistrates’ court, it came to light that she held more than 100 policies with Sanlam, costing her upwards of R42,000 a month in premiums. She holds several more policies with other insurance firms.

Read more: Karoo resident accused of R640K in funeral policy fraud denied bail as sinister criminal racket emerges

She was denied bail and is expected to return to court next week. DM