Police arrested five suspects in connection with a R2 million fraud scheme targeting Capitec Bank through fraudulent loan applications.
Key Points:
- Five suspects appear in court for a multi-million-rand fraud scheme.
- Capitec Bank allegedly lost over R2 million due to fraudulent loan applications.
- The case is part of a broader crackdown on financial crimes in South Africa.
Arrests in Mpumalanga Over Fraudulent Loan Scheme
Five suspects, accused of defrauding Capitec Bank of over R2 million through fraudulent loan applications, appeared in the Emalahleni Magistrates’ Court this week. Authorities arrested the suspects during a targeted operation across Mpumalanga. The Provincial Commercial Crime Investigation Unit apprehended the accused—Christopher Mduduzi Zelani, 36; Eric Khumalo, 53; Mthobisi Mahlobo, 32; Austin Mabuza, 27; and Zithobile Mango, 41—between March 26 and 28, 2025, as part of a broader crackdown on financial fraud in Mpumalanga and Bronkhorstspruit.
Fraud Syndicate Allegedly Operated for Two Years
Monica Nyuswa, spokesperson for the National Prosecuting Authority (NPA), said the group allegedly operated a criminal syndicate from August 2021 to August 2023. The suspects used fraudulent documents to apply for loans and credit cards from Capitec Bank. The NPA further alleges that the group recruited Capitec employees to facilitate the illegal loan approvals.
“Once the loans were approved, the suspects allegedly divided the proceeds among themselves,” Nyuswa stated. As a result, Capitec Bank suffered losses exceeding R2 million.
Bail Conditions and Further Investigations
Authorities granted each of the accused bail of R5,000, subject to strict conditions. These include reporting to the nearest police station twice a week, surrendering their travel documents, notifying the investigating officer before leaving the country, and attending all court appearances.
The court postponed the case to May 8 for further investigation and the potential identification of additional suspects.
The 2024/25 Specialised Commercial Crimes Unit (SCCU) Capitec project launched this case to strengthen collaboration between agencies in fighting financial crimes in the banking sector.
“The project aims to improve coordination between the SCCU and the Provincial Commercial Crime Investigation Unit to expedite financial crime prosecutions and reduce their impact on the economy,” Nyuswa said.
