Churchmembers defraud RAF

2003-07-10 22:59

Durban - Seventeen church members, including the pastor, were arrested in Phoenix, Durban, on Wednesday night for defrauding the Road Accident Fund (RAF)of over R300 000.

Two other members of the church surrendered to police on Thursday. The 19, including six couples living in the same house, appeared in court on Thursday and were granted bail of between R3 500 to R7 000.

Director Bala Naidoo said it was alleged claims with supporting doctor's reports were submitted to the RAF for accidents that never happened.

Among those arrested in the raid on Wednesday night was Paul Armugga and his wife Padmini. Members of the Provincial RAF Project Team Crime Unit were involved in the operation.

Paul's nephew, former Phoenix policeman Vernon Basil Armugga, was arrested along with several others last year on 602 counts of defrauding the RAF.

It was alleged Armugga touted for two lawyers who submitted claims totalling R10.5m. Two of his co-accused pretended to be doctors and signed supporting reports.

Spokesperson Themba Mhambi said the RAF was investigating a possible link between the two cases.

"These arrests follow those of two touts and is part of an ongoing investigation into fraud by people who may constitute a syndicate," he said.

Mhambi would not comment on whether the RAF had paid the 19 accused but said the fraud had been committed over a long period.

"Each year the RAF loses between R300m and R500m due to fraud and corruption. We are determined to stamp this out," he said.

Those arrested on Wednesday and Thursday made false claims of R10 000 in addition to the R45 000 claimed by Pastor Poobalan Naidoo. His wife Rajespree allegedly falsely claimed R10 000.

- The Witness