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Sentencing of Dr Adams guilty of defrauding Department’s Compensation Fund postponed

by Lloyd Ramutloa last modified 2017-05-12 10:37

11 May 2017

Sentencing proceedings in the trial of Dr David Michael Adams (41) found guilty by the Pretoria Magistrates’ Court of defrauding the Department of Labour entity, the Compensation Fund (CF) of R396 660-00 were today postponed to complete aspects of sentencing.

Dr Adams was on 25 April 2017 found guilty of contravention of section six of prevention of organised crime act, and also guilty of theft.

The fraud doctor was facing 29 counts of contravening Section 6 of the Prevention of Organised Crime Act, and 29 counts of theft. Dr Adams pleaded not guilty in the Pretoria Magistrates’ Court in September 2016.

Sentencing procedures will now begin on 22 June 2017.

Dr Adams is said to have received unlawful payments from the Compensation Fund, and was arrested in 2010. During his arrest Dr Adams was running his practice in the North West.

The Asset Forfeiture Unit (AFU) has in terms of Section 18 of prevention of organised crime applied for a confiscation order. The AFU and Probation Officer are also expected to submit their reports ahead of sentencing.

Meanwhile, in another separate matter three former employees of the Department of Labour’s Compensation Fund - Maxwell Ramaphosa, Samuel Mfeleng and (Ms) Kgabo Johanna Methi – who are accused of allegedly defrauding the department of R476 150, 58 also appeared in the Pretoria Magistrates’ Court.

Ramaphosa took the stand and testified that in terms of systems used by the CF it was not possible to create a fraudulent account. He further told the Court that the system used by the Compensation Fund was impossible to circumvent. He testified that during his employ for the Fund, he was working as an Approver of claims and that only Capturers can effect changes to a claim.

He said it was not possible to temper with the system, further testifying that it was not possible to reopen closed claims and that “only the supervisor can do so”. He also explained to the Court processes involved in the claiming process, saying these involved many parties in the chain including the Approver, Medical section, Finance and Capturers among others.

The accused are out on a warning. The trial continues on 07 June 2017.

In this matter Ramaphosa, Mfeleng and Methi are alleged to have been working with fellow accused Dr Jones Mothemola Modau, a physiotherapist based in Rustenburg, North West. It is alleged that Ramaphosa, Mfeleng and Methi recruited Modau to submit fraudulent claims which were later processed and payments were paid into his accounts, and money was later shared.

Modau pleaded guilty in March 2012 in the Pretoria Specialised Commercial Crime Court - where the matter was originally heard - to defrauding department’s Compensation Fund. For his role in the matter Modau was sentenced to five-years suspension.

The matter involving Ramaphosa, Mfeleng and Methi was subsequently transferred to the Pretoria Magistrate’s Court in a separation of trial.

The Compensation Fund is a public entity under the administration of Department of Labour. The CF provides cover to workers injured and/or who contract diseases at work.

Issued by:

Department of Labour Spokesperson

Teboho Thejane

082 697 0694


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