An Oudtshoorn based funeral parlour operating without proper documentation, has been ordered to pay R10 000 to the family of a deceased person before September 15, or face a fine or imprisonment.
The sentence was handed down in the Oudtshoorn Regional Court on Monday against Alpha Star Funeral Services.
The funeral parlour acted as a financial service provider without a licence, misleading members of the public, especially the poor in the local community, according to reports.
In one incident, it failed to pay a R10 000 policy benefit to the family although the policy was paid up.
The funeral service was rendered by another funeral parlour which was covered by a secondary policy.
Hawks spokesperson Zinzi Hani said the company was found guilty of contravening Section 7(1) of the Financial Advisory Intermediary Act 37 of 2002.
“(The) entity was subsequently given a R50 000 fine or five years imprisonment suspended for five years on condition that Alpha Star Funeral Services pays R10 000 to the victim before 15 September 2023,” she said.
Provincial head of the Hawks in the Western Cape, Major-General Mathipa Makgato lauded the team for their job in ensuring that justice was served.
He also urged the public to be extra vigilant when dealing with financial advisers and institutions.
Oudtshoorn community activist Leon Campher said: “We call on business owners to do business in an honest way, especially when it comes to funeral business because that’s a time when people need the support. We hope this sends a message to other businesses to ensure their businesses are honest and compliant.”
Cape Times