In a significant breakthrough in Mpumalanga’s fight against financial crime, Romini Lucky Shongwe, 42, and Noxolo Mpumelelo Mndawe, 37, were convicted and sentenced for a series of fraudulent activities, including money laundering and contravening the Tax Administration Act. The sentencing took place at the Nelspruit Specialised Commercial Crimes Court on Wednesday, following an extensive investigation led by the Hawks’ Nelspruit-based serious commercial crime unit.
Shongwe, the sole director of Velibanti Vuka Enterprise (Pty) Ltd, was found guilty of submitting fraudulent tax returns to the South African Revenue Service (SARS) in 2015 and 2016. Through these false submissions, Shongwe managed to fraudulently claim a tax refund amounting to R240,566.78, which resulted in a direct loss to SARS. His fraudulent activity did not stop there—he transferred part of the illicit refund to his co-conspirator, Mndawe, further implicating her in the money laundering operation.
As a result of their illegal dealings, the court imposed harsh penalties on both Shongwe and Mndawe. Shongwe was sentenced to four years in prison for fraud and four years for money laundering, with the sentences to run concurrently. Meanwhile, Mndawe was given a four-year sentence for money laundering, but it was wholly suspended for five years, on the condition that she does not commit similar offenses in the future.
Mndawe’s sentence includes 36 months of correctional supervision, which comes with stringent conditions. For the duration of the correctional supervision, she is to be under 24-hour house arrest and must complete 16 hours of community service each month. She is also prohibited from visiting liquor outlets and using any dependency-inducing substances not prescribed by a doctor. Furthermore, the court recommended that Mndawe undergo various rehabilitation programs focused on crime prevention, life skills, and conflict resolution.
The court’s ruling also saw the company Velibanti Vuka Enterprise (Pty) Ltd fined a total of R100,000, with R50,000 each for charges of fraud and money laundering. However, the fine is wholly suspended for five years on the condition that the company remains free from involvement in similar criminal activities during that time.
This case is part of a broader crackdown on financial crime in Mpumalanga. Last year, another high-profile case saw the conviction of Smangaliso Innocent Khoza, a director of four companies, for money laundering and tax evasion. The Nelspruit Specialised Commercial Crimes Court continues to play a crucial role in rooting out financial crime, particularly within the business sector, as seen in these recent convictions.
Authorities are sending a strong message that fraud and money laundering will not be tolerated, and the justice system will take a hard stance against those who undermine the integrity of South Africa’s financial structures.
