A former Liberty Group employee has been debarred after it was found that she colluded with potential clients to defraud the insurance company.

Makoma Cheu sought relief at the Financial Service Tribunal (FST) after her former employer issued her with a notice of debarment.

The incident unfolded after Liberty Group initiated an investigation that unearthed troubling evidence against Cheu. It was discovered that she had procured disputed insurance policies without the consent of at least five clients.

In addition, it was revealed that Cheu had submitted policies lacking genuine signatures from the respective policyholders and had allegedly worked with these clients in orchestrating a fraudulent scheme targeting the insurance provider.

As part of a forensic investigation, Cheu was interviewed by investigators, during which she prepared a handwritten confession in July 2024, acknowledging her involvement in the allegations.

Despite the gravity of her admissions, the case took another turn when Cheu later attempted to counter the claims. In February 2025, she presented sworn statements from two of the five clients, who distanced themselves from the alleged collusion and explained that the reason for the abrupt cancellation of the policies was due to their personal financial difficulties. 

Nonetheless, Liberty Group dismissed these assertions, and by March 2025, Cheu was formally notified of her debarment. The decision was grounded in her failure to uphold the essential standards of honesty and integrity expected of someone in her position.

At the FST, for the first time, Cheu denied confessing to the allegations, she said “I was directed on what to write because he (the investigator) was in a hurry to knock off and I did not get a chance to give my side of the story.”

However, the tribunal found her attempts to distance herself from the confession woefully to be inadequate, concluding that she had not provided credible reasoning to refute the circumstances of her confession.

“In the circumstances, the application should be dismissed,” said the FST.

In the premises, the tribunal said it had no reason to interfere with the insurer’s decision to debar Cheu.

sinenhlanhla.masilela@iol.co.za

IOL News

Get your news on the go, click here to join the IOL News WhatsApp channel

Source link