The Nelspruit Specialised Commercial Crimes Court in Mpumalanga has convicted and sentenced two people, Romini Lucky Shongwe, 42, and Noxolo Mpumelelo Mndawe, 37, on charges of fraud, contravention of the Tax Administration Act and money laundering.
The two were convicted and sentenced on Wednesday, according to Warrant Officer Thandi Tshabalala, Mpumalanga provincial spokesperson for the Directorate for Priority Crime Investigation, also known as the Hawks.
“The sentence follows after investigation carried forward by the Hawks Nelspruit-based serious commercial crime investigation. The company, Velibanti Vuka Enterprise (Pty) Ltd, which Shongwe is registered as the sole director, was also fined,” said Tshabalala.
During 2015 and 2016, Shongwe submitted fraudulent tax returns to the South African Revenue Service (Sars) through misrepresentation, by claiming tax refunds prejudicing and causing actual loss of R240,566.78 to the taxman.
From the fraudulently acquired tax refund, Shongwe transferred a portion of the money to Mndawe.
Both Shongwe and Mndawe were convicted and sentenced by the Nelspruit Specialised Commercial Crimes Court on Wednesday.
“The company Velibanti Vuka Enterprise (Pty) Ltd was fined R100,000 combined for two charges. The company was fined R50,000 for fraud and R50,000 for money laundering. Both fines are wholly suspended for the period of five years on conditions that the company is not linked with similar criminal activities during the period of suspension,” said Tshabalala.
Shongwe was sentenced to four years imprisonment for fraud and four years imprisonment for money laundering. The court further instructed that both sentences would run concurrently.
“Mndawe was also found guilty of money laundering. She was sentenced to four years imprisonment, which is wholly suspended for the period of five years on condition that she does not commit similar offences,” said Tshabalala.
The court further placed Mndawe under 36 months correctional supervision on the following conditions – 24-hour house arrest for the duration of correctional supervision, and 16-hour community service per month, performing general labour duties at the institution determined by the Nelspruit community corrections for the duration of correctional supervision.
“The court further recommended that Mndawe should undergo treatment, development and support programmes, including crime prevention, life skills, economic programmes and conflict resolution. In addition, Mndawe was prohibited from using dependency (causing) substances other than that prescribed by medical practitioners,” said Tshabalala.
“She was also prohibited from visiting liquor outlets. She may not leave the Magisterial District of Mbombela without prior approval of the commissioner of Correctional Services.”
Last year, the Nelspruit Specialised Commercial Crime Court had convicted and sentenced 40-year-old Smangaliso Innocent Khoza, a director of four companies, for contravening sections of the Prevention of Organised Crime Act (POCA) in relation to money laundering, and the Tax Administration Act.
In 2021, IOL reported that Khoza was among eight people and companies that appeared before the Nelspruit Magistrate’s Court for alleged tax evasion, theft and money laundering. The charge sheet included four companies that were used by individuals in the group.