Capitec Bank was the primary target of a syndicate that allegedly defrauded the institution of over R2 million through fraudulent loan and credit card applications.
Image: File
Five alleged members of a fraud syndicate, accused of defrauding Capitec Bank of over R2 million through fraudulent loan applications, appeared in the Emalahleni Magistrates' Court this week following a targeted operation across Mpumalanga.
The accused, Christopher Mduduzi Zelani, 36, Eric Khumalo, 53, Mthobisi Mahlobo, 32, Austin Mabuza, 27, and Zithobile Mango,41, were apprehended in a sting operation carried out by the Provincial Commercial Crime Investigation Unit.
The arrests, conducted between 26 and 28 March 2025, were part of a targeted operation across Mpumalanga and Bronkhorstspruit aimed at a broader crackdown on financial fraud.
The National Prosecuting Authority (NPA) Regional spokesperson Monica Nyuswa said the group allegedly operated a criminal syndicate from August 2021 to August 2023, using fraudulent documents to apply for loans and credit cards through Capitec Bank.
It is further alleged that they recruited Capitec employees to help facilitate the illegal loan approvals.
“Once the loans were approved, the accused would allegedly share the proceeds among themselves,” the NPA stated.
As a result, Capitec suffered losses exceeding R2 million.
The court granted each of the accused bail of R5,000, accompanied by strict conditions.
These include reporting to the nearest police station twice a week, surrendering their travel documents, refraining from leaving the country without notifying the investigating officer, and attending all court appearances.
The case has been postponed to May 8 to allow for further investigations and the possible identification of additional suspects.
This case forms part of the 2024/25 Specialised Commercial Crimes Unit (SCCU), Capitec project, launched to strengthen inter-agency collaboration in combating financial crimes within the banking sector.
“The project aims to enhance collaboration between the SCCU and the Provincial Commercial Crime Investigation Unit to expedite the prosecution of financial crimes and mitigate their impact on the country’s economy,” said Nyuswa.
IOL News
Related Topics: