Fraudster who took R160,000 from Sars gets wholly suspended jail terms, and must pay back money
|Published
The Nelspruit Commercial Crime Court in Mpumalanga has convicted and sentenced 44-year-old Mduduzi Steven Mashwama and his company MPG Mash Trading CC on charges of theft and contravention of the Prevention of Organised Crime Act (POCA).
In July 2020, Mashwama and his company fraudulently submitted Value Added Tax claims and claimed undue VAT refunds of R166,850 from SA Revenue Service (Sars).
“The matter was reported to the Hawks Nelspruit-based serious commercial crime investigation (unit) for further investigation. The investigation was finalised and the accused was summoned to appear in court on several occasion until he was sentenced on Tuesday,” said Captain Dineo Lucy Sekgotodi, Mpumalanga spokesperson for the Directorate for Priority Crime Investigation, also known as the Hawks.
Mashwama was accused number two in the court case. On count one, of theft, he was sentenced to six years imprisonment which is wholly suspended for a period of five years on condition that he is not convicted of theft, fraud and or any offence involving misrepresentation committed during the period of suspension.
On count two, of contravention of the VAT Act, Mashwama was sentenced to 24 months imprisonment, which is wholly suspended for a period of five years on condition that he is not found guilty of contravention of the Act during the period of suspension.
On count three, contravention of the Prevention of Organised Crime Act, Mashwama was sentenced to six years imprisonment which is wholly suspended for a period of five years on condition that he is not convicted of contravening of the Act during the period of suspension.
“The accused was further ordered to repay Sars an amount of R166,850 in instalment of R500 per month starting from February 1, and thereafter on/ or before the seventh of each month of every succeeding month until the owed amount is paid in full,” said Sekgotodi.
Those payment are to be made to the clerk of court in Mbombela.
Regarding the accused number one, MPG Trading CC, on the charge of theft, the court slapped the entity with a R100,000 fine which is wholly suspended for a period of five years on condition that it is not convicted of theft, fraud or any offence involving misrepresentation committed during the period of suspension.
On count two, of contravention of the VAT Act, the company was sentenced to R100,000 fine which is wholly suspended for five years on condition that it is not found guilty of contravention of the VAT Act.
On count three, contravention of the Prevention of Organised Crime Act, the company was sentenced to R100,000 fine which is wholly suspended for five years on condition that it is not found guilty of contravening the Act during the period of suspension.
Meanwhile, provincial head of the Hawks in Mpumalanga, Major General Nicholas Gerber has applauded the law enforcement and prosecution team “for the excellent work done in ensuring conviction”.
Last year, IOL reported that the Nelspruit Specialised Commercial Crimes Court had convicted and sentenced Sthembiso Nelson Ubisi, 42, for money laundering, in a case where Sars lost almost R1 million to a group of fraudsters.
“Ubisi was convicted and sentenced to R20,000 fine or three years imprisonment, of which half, R10,000 or 18 months imprisonment is suspended for five years,” Sekgotodi said at the time.
Sekgotodi said Ubisi has been ordered to pay back the revenue service R50,000 in R800 instalments before or on the seventh day of each month.
Ubisi was the last to be sentenced in the group of six accused who benefited from the Sars fraud by submitting fraudulent tax returns on behalf of Dlami Trading cc.
They were arrested on April 29, 2021 and charged with fraud, theft or alternatively contravening the provisions of the Tax Administration Act and money laundering.
IOL