Polokwane, Limpopo — Company director Mmaseala Kekana, bookkeeper Richard Sekgantsha Makgasa, and their business, Mmarekhu Retail and Suppliers CC, appeared before the Specialised Commercial Crime Court in Polokwane on Friday, 15 November 2024, facing charges related to a tax fraud scheme involving nearly R1.7 million.
According to Warrant Officer Lethunya Mmuroa, spokesperson for the Directorate for Priority Crime Investigation (Hawks), the trio is accused of submitting false income tax returns to the South African Revenue Service (SARS) during the 2013/2014 tax period. The fraudulent claims led to a false refund of R1,665,089, which was allegedly set to be processed before SARS flagged the irregularities.
The case came to light after SARS conducted a forensic audit in 2022, which revealed discrepancies in the tax returns submitted by Mmarekhu Retail and Suppliers CC. The tax authority’s investigation found that Kekana, Makgasa, and the company had falsely declared income, aiming to secure a refund that they were not entitled to. The fraudulent activity led to an investigation being launched, with the case docket opened at Mokopane police station and subsequently referred to the Hawks’ serious commercial crime investigation unit in Polokwane.
After a detailed investigation, the case was handed to the public prosecutor for review. Warrants for the arrest of Kekana, Makgasa, and Mmarekhu Retail and Suppliers CC were issued, and the three were apprehended on 21 October 2024. They were summoned to appear in court on 15 November, where their case was postponed to 22 November 2024 for further investigation.
This case is part of a broader crackdown on tax-related offences in South Africa. Recently, the Nelspruit Specialised Commercial Crime Court convicted Smangaliso Innocent Khoza, a director of multiple companies, for contravening the Prevention of Organised Crime Act (POCA) and the Tax Administration Act. Khoza’s conviction, which included money laundering charges, follows an earlier 2021 investigation into eight individuals and companies accused of tax evasion and fraud.
In light of these high-profile cases, the Hawks have reiterated their commitment to investigating and prosecuting tax fraud and related crimes, which undermine the financial integrity of the country and its taxpayers.
As the investigation into Kekana, Makgasa, and Mmarekhu Retail and Suppliers CC progresses, authorities are urging businesses and individuals to comply with tax laws and report any fraudulent activities to ensure accountability. The trio’s case is set to continue on 22 November 2024, with further police investigations expected to shed light on the full extent of the alleged fraud.
