The Johannesburg high court on Monday sentenced a VAT fraud syndicate to a cumulative 205 years behind bars for 391 counts ranging from fraud, forgery, uttering, corruption and money laundering.
The National Prosecuting Authority (NPA) said Jeremiah Musiwacho Dube was sentenced to 65 years, Rebecca Dube to 25, Maxwell Ndlovu-Mavudzi to 65, Constance Ramone to 10, Edward Shoniwa to 15, Audrey Radebe to five, Bongani Mbonani to five and Sello Rathete to 15.
“They were charged with Adam Phiri and Daniel Khanyile, who turned state witnesses. Christopher Dube absconded after their conviction when his bail was extended, and authorities are continuing their search to apprehend him,” NPA spokesperson Phindi Mjonondwane said.
She said between 2009 and their arrest in 2015, the accused operated a VAT fraud syndicate.
“The syndicate kingpins defrauded Sars by submitting VAT returns alleging that entities which were registered in their names had incurred VAT expenses by importing into South Africa and/or purchasing from the local suppliers over R100bn worth of diesel and storing it at storage facilities belonging to Sasol Oil and Vopak Ltd.”
The imported diesel was sold to oil majors at a price inclusive of VAT at zero rate and they were thus entitled to be refunded the VAT expenses they spent on storage costs.
“Forged invoices purporting to have been issued by Sasol and/or Vopak as well as storage agreements were submitted to Sars in support of the fraudulent claims for VAT refunds.”
At the time of their arrest, the VAT syndicate had claimed more than R200m from Sars, with R100m paid out and lost to the fiscus.
It was established that all business entities used by the syndicate to perpetrate the fraud were dormant and not involved in any active trading, though registered as VAT vendors with Sars.
Sars received an anonymous tip-off informing them about the suspicious activities that were being carried out by the accused.
During the investigations the accused attempted to bribe a senior Sars official.
TimesLIVE
Hefty sentences for VAT fraud syndicate members
Image: 123RF/thawornnurak
The Johannesburg high court on Monday sentenced a VAT fraud syndicate to a cumulative 205 years behind bars for 391 counts ranging from fraud, forgery, uttering, corruption and money laundering.
The National Prosecuting Authority (NPA) said Jeremiah Musiwacho Dube was sentenced to 65 years, Rebecca Dube to 25, Maxwell Ndlovu-Mavudzi to 65, Constance Ramone to 10, Edward Shoniwa to 15, Audrey Radebe to five, Bongani Mbonani to five and Sello Rathete to 15.
“They were charged with Adam Phiri and Daniel Khanyile, who turned state witnesses. Christopher Dube absconded after their conviction when his bail was extended, and authorities are continuing their search to apprehend him,” NPA spokesperson Phindi Mjonondwane said.
She said between 2009 and their arrest in 2015, the accused operated a VAT fraud syndicate.
“The syndicate kingpins defrauded Sars by submitting VAT returns alleging that entities which were registered in their names had incurred VAT expenses by importing into South Africa and/or purchasing from the local suppliers over R100bn worth of diesel and storing it at storage facilities belonging to Sasol Oil and Vopak Ltd.”
The imported diesel was sold to oil majors at a price inclusive of VAT at zero rate and they were thus entitled to be refunded the VAT expenses they spent on storage costs.
“Forged invoices purporting to have been issued by Sasol and/or Vopak as well as storage agreements were submitted to Sars in support of the fraudulent claims for VAT refunds.”
At the time of their arrest, the VAT syndicate had claimed more than R200m from Sars, with R100m paid out and lost to the fiscus.
It was established that all business entities used by the syndicate to perpetrate the fraud were dormant and not involved in any active trading, though registered as VAT vendors with Sars.
Sars received an anonymous tip-off informing them about the suspicious activities that were being carried out by the accused.
During the investigations the accused attempted to bribe a senior Sars official.
TimesLIVE
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