Witbank Duo Convicted For SARS Fraud
Image source: R1 million fraud: Siblings fined R10,000 and R50,000 respectively after defrauding SARS (IOL)
Published by: Omphile Pule
The Witbank Magistrate’s Court in Mpumalanga has handed down convictions and sentences to Godfrey Thembikuhle Mgidi, 36, and Christina Ncazane Mgidi, 50, for defrauding the South African Revenue Service (SARS) of nearly R1 million.
The duo, who were directors of Morvest Pinnacle Solutions in January 2015, submitted fraudulent tax returns for tax credits to SARS, claiming undue funds through misrepresentation. These payments were routed to the company’s bank account, leading to an actual loss of R968,099 to the revenue service.
Captain Dineo Lucy Sekgotodi, spokesperson for the Hawks in Mpumalanga, confirmed that the matter was reported to the Hawks’ serious commercial crime investigation unit in Nelspruit, leading to a thorough probe. Arrest warrants were issued, resulting in the arrest of both accused individuals who were subsequently released on bail.
Following multiple court appearances, the accused were found guilty and sentenced. Godfrey Thembikuhle Mgidi was fined R10,000 or faced 12 months’ imprisonment. He also received a suspended six-year imprisonment sentence for five years on the condition of no similar offenses during the suspension period.
Christina Ncazane Mgidi was fined R50,000, fully suspended for five years under the same conditions.
Major General Nicholas Gerber, the provincial head of the Hawks in Mpumalanga, commended the investigating team for their diligent work that led to successful convictions. He issued a warning to community members against submitting fraudulent claims to SARS.
In a related case, the Nelspruit Specialised Commercial Crimes Court convicted and sentenced Clifford Ndlovu, 40, and his two companies for fraud, contravention of the Prevention of Organised Crime Act, and money laundering. Ndlovu, as the sole director of two companies, fraudulently received over R3 million from SARS by submitting false tax invoices for services never rendered between 2013 and 2017. This action caused a significant loss to the revenue service.
These convictions underscore ongoing efforts by law enforcement to combat financial crimes and protect public funds from fraudulent schemes.
About The Author
