Community service and suspended sentence for businessman who defrauded SARS of more than R3 million
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 was charged as accused number three.
Ndlovu fraudulently received over R3 million from the South African Revenue Service (Sars), according to Mpumalanga spokesperson for the Directorate for Priority Crime Investigation, also known as the Hawks, Captain Dineo Lucy 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.
The matter was reported to the Hawks Nelspruit-based serious commercial crime investigation for further investigation.
The investigation was finalised and the accused – Ndlovu was summoned to appear in court.
On the 11 counts of fraud, Ndlovu as accused number one was sentenced to 10 years imprisonment of which half is wholly suspended for five years, on condition that the accused are not convicted of fraud.
Ndlovu was further sentenced to 36 months of correctional supervision.
“The accused was placed under 24-hour house arrest during correctional supervision sentence. The accused is to perform community service of 16 hours per month for the duration of his sentence. The accused (was ordered) to attend treatment, development and support programmes,” said Sekgotodi.
On the charge of money laundering, Ndlovu was sentenced to five years imprisonment which is wholly suspended for five years on condition that the accused is not convicted for contravention of the Prevention of Organized Crime Act during the period of suspension.
Ndlovu was declared unfit to possess a firearm.
Ndlovu’s company, Mahathamile Trading CC, was fined R200,000 fine and half is suspended for five years on condition that the company is not convicted of fraud during the period of suspension.
On the charge of money laundering, Mahathamile Trading CC was fined R200,000 fine which is wholly suspended for five years on condition that the company is not convicted on charges of money laundering during the period of suspension.
Ndlovu’s second company, Malatirhle Hire and Transport CC was fined R200,000 on charges of fraud, and half of the fine is suspended for five years on condition that the enterprise is not convicted of fraud during the period of suspension.
On the charge of money laundering, Malatirhle Hire and Transport CC was fined R200, 000 which is wholly suspended for five years on condition that the the company is not convicted of money laundering during the period of suspension.
The Hawks said assets belonging to Ndlovu and his companies were seized to reimburse SARS.
“The accused has already paid back the prejudiced loss amount to Sars. The Asset Forfeiture Unit submitted an application for confiscating order in terms of Section 18 of Prevention of Organised Crime Act,” said Sekgotodi.
Meanwhile, provincial head of the Hawks in Mpumalanga, Major General Nicholas Gerber has welcomed the sentencing of Ndlovu and his companies, and the seizure of their assets.
IOL