R1 million fraud: Siblings fined R10,000 and R50,000 respectively after defrauding SARS
The Witbank Magistrate’s Court in Mpumalanga has convicted and sentenced Godfrey Thembikuhle Mgidi, 36, and and Christina Ncazane Mgidi, 50, for defrauding the SA Revenue Service (SARS) of almost R1 million.
The duo was found guilty of fraud contravening section 234 of the Tax Administration Act, according to the Directorate for Priority Crime Investigation, also known as the Hawks.
During January 2015, both accused were directors of a company called Morvest Pinnacle Solutions.
“The accused submitted fraudulent tax returns for tax credits to the South African Revenue Service, claiming undue funds through misrepresentation whereby payments were made to the company's Standard Bank business account belonging to Siyophumelela Trading and Projects cc, prejudicing and causing an actual loss to the revenue service R968,099,” said said Hawks spokesperson in Mpumalanga, Captain Dineo Lucy Sekgotodi.
The matter was reported to the Hawks’ Nelspruit-based serious commercial crime investigation unit for a thorough probe.
Sekgotodi said the investigation was finalised and warrant of arrests were issued.
“Both accused were arrested and later released on bail. They appeared in court on several occasions until they were found guilty and sentenced,” she said.
After the conviction, Godfrey Thembikuhle Mgidi was sentenced to R10,000 fine or 12 months imprisonment. He was further sentenced to six years imprisonment which is wholly suspended for a period of five years on condition that he is not found guilty of similar offence during the period of suspension.
Christina Ncazane Mgidi was sentenced to R50,000 fine, which is wholly suspended for the period of five years on condition that she is not found guilty of the same offence during the period of suspension.
Meanwhile, provincial head of the Hawks in Mpumalanga, Major General Nicholas Gerber has welcomed the sentencing of the duo.
Gerber has applauded the investigating team “for their good work” which resulted in sentences.
He also warned community members across the province to refrain from submitting fraudulent claims to SARS.
On Monday, IOL reported that the Nelspruit Specialised Commercial Crimes Court has convicted and sentenced 40-year-old Clifford Ndlovu (40), and his two companies on charges of fraud, contravention of the Prevention of Organised Crime Act, and money laundering.
During 2013 and 2017, Ndlovu was the sole director of two companies, Mahathamile Trading CC referred to in the case as accused number two, and Malatirhle Hire and Transport CC which was charged as accused number three.
Ndlovu fraudulently received over R3 million from the Sars, according to Sekgotodi.
“The accused submitted fraudulent tax invoices to Sars for services never rendered, claiming undue funds, through misrepresentation, prejudicing and causing an actual loss to the revenue service to the total amount of R3, 333,992,” said Sekgotodi.
IOL