Thambapilai appeared before Magistrate Desmond Beukes a day after he had been arrested.

Public Prosecutor Karin Esterhuizen told the Magistrate that the State had agreed that he could be released on bail on condition that he report to the Police in either Windhoek or Ondangwa each Monday and Friday, and that he hand over all his travel documents to the Police officer investigating the case.

The Magistrate postponed the case to May 9 next year for further investigation.

Thambapilai's lawyer, Chris Brandt, told The Namibian later on Wednesday that Thambapilai is denying the charge against him.

"He will defend the matter and personally he's innocent," Brandt said.

He described the charge against Thambapilai as part of "a witch-hunt".

The MVA Fund briefly set out part of the allegations against the lawyer in a statement issued on Monday.

It claimed that Thambapilai had acted for a client who lodged a claim against the MVA Fund in 2000 for loss of support for herself and her minor children after her husband died in a car accident.

The client herself passed away in February 2001, before the claim was finalised, the statement says.

The MVA Fund claimed that Thambapilai was informed of his client's death, but did not inform the MVA Fund of this and continued to pursue the claim against the Fund.

"He instead represented to the Fund that the deceased was still alive and consequently the Fund paid out N$75 956,00 to the 'claimant'," the statement reads.

It also stated: "The trail of how the money was distributed indicates an intent to defraud the Fund.

The Fund thus had no option but to lay a charge or fraud and we were informed that Mr Thambapilai was arrested this morning."

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