Two individuals, Romini Lucky Shongwe, 42, and Noxolo Mpumelelo Mndawe, 37, have been convicted and sentenced for their involvement in a fraudulent scheme that cost the South African Revenue Service (SARS) a significant sum. The Nelspruit Specialised Commercial Crimes Court in Mpumalanga handed down the sentence on Wednesday following an investigation led by the Hawks, South Africa’s Directorate for Priority Crime Investigation.
Shongwe, the sole director of Velibanti Vuka Enterprise (Pty) Ltd, was found guilty of submitting fraudulent tax returns for the years 2015 and 2016, misleading SARS by claiming tax refunds based on false information. These fraudulent claims resulted in a loss of R240,566.78 to the taxman. A portion of the funds acquired through this scheme was then transferred to Mndawe, who was also implicated in the money laundering aspect of the crime.
The court’s verdict was not just a personal one but also a corporate punishment, as Velibanti Vuka Enterprise (Pty) Ltd was fined R100,000. The fine was divided into two charges—R50,000 for fraud and R50,000 for money laundering—though these fines were suspended for five years, provided the company did not engage in any similar criminal activities during that period.
Shongwe’s sentence was particularly severe, as he was handed a four-year term for fraud and a four-year term for money laundering. However, the court ruled that the two sentences would run concurrently, meaning he would serve a total of four years in prison.
Mndawe, who was also found guilty of money laundering, received a more lenient sentence. Her four-year term was fully suspended for five years, contingent upon her refraining from committing any similar offenses during this period. Additionally, Mndawe was placed under 36 months of correctional supervision, which includes stringent conditions: 24-hour house arrest, 16 hours of community service each month, and mandatory participation in crime prevention, life skills, economic, and conflict resolution programs.
In an effort to support Mndawe’s rehabilitation, the court imposed additional restrictions on her behavior. She was prohibited from using any substances not prescribed by medical professionals and was also banned from visiting liquor outlets. Furthermore, she cannot leave the Magisterial District of Mbombela without prior approval from the Commissioner of Correctional Services.
This case follows a pattern of serious commercial crime cases heard at the Nelspruit Specialised Commercial Crimes Court. Just last year, 40-year-old Smangaliso Innocent Khoza, a director of several companies, was sentenced for violating sections of the Prevention of Organised Crime Act (POCA) and the Tax Administration Act. Khoza had been part of a group of individuals charged with tax evasion, theft, and money laundering, underscoring the persistence of such crimes in the region.
These sentences highlight the efforts of South African authorities to combat financial crimes, including tax fraud and money laundering, and emphasize the importance of corporate and personal accountability in maintaining a transparent and fair financial system.
