[imagesource:gencraftai]

Between 2009 and 2015, a group operating a VAT syndicate managed to fraudulently claim Value Added Tax (VAT) refunds from the South African Revenue Service, defrauding SARS of a staggering R100 million over the period.

The group of eight people was finally charged and sentenced on Monday by the South Gauteng High Court in Johannesburg, per IOL, all thanks to one of the member’s wife.

National Prosecuting Authority (NPA) said the syndicate had four ringleaders consisting of two Zimbabwean nationals, Jeremiah Musiwacho Dube and Maxwell Ndlovu Mavudzi, who both fraudulently acquired South African citizenship. The group also consisted of a Zambian national Boaz Chilala who evaded arrest, and Sello Rathete.

“The syndicate kingpins defrauded Sars by submitting VAT returns to Sars alleging that entities which were registered in their names and in the names of their co-accused, had incurred VAT expenses by importing into the the country and purchasing from the local suppliers,” said Gauteng NPA spokesperson Phindi Mjonondwane.

Mjonondwane further stated that the group claimed they imported diesel, stored it at Vopak Limited and Sasol Oil, and subsequently sold it to Engen, Imperial Bulk Services, FPS, and Unitrans.

At the time of their arrest in 2015, they had claimed R200 million and only R100 million was paid out by SARS.

The lid was lifted on this syndicate when Dube’s wife, Rebecca Dube, decided it was time to take a moral standing when she found out her hubby’s side-squeeze was getting a substantial amount of pocket money.

It is believed that Rebecca anonymously called SARS and informed the revenue entity about the illegal activities when she found out her husband was having an affair with Moliehi Constance Ramone. To make the infidelity hurt that much more, Dube was apparently providing Ramone with a monthly allowance, which sometimes amounted to R90,000, while they also went on overseas trips.

Mjonondwane mentioned that the anonymous tip aided the SARS investigation team in identifying all parties involved and tracing the funds across multiple bank accounts. They could tell that something was up as Ramone’s lifestyle exceeded her salary from Hollard Insurance.

Naturally, the guys tried to get out of the illegal proceedings. Mavudzi and Dube tried to bribe a senior SARS official by offering him R150,000 to ensure that one of their false claims was paid out during investigations.

When they were arrested, they brought interlocutory applications and appeals to the Supreme Court of Appeal and the Constitutional Court in attempts to evade justice but their applications were dismissed.

The NPA said Adam Phiri and Daniel Khanyile turned state witnesses, while another accused, Christopher Dube absconded after his bail was extended – he’s still on the run.

The real biter is that both Dube, his wife and his girlfriend were all sentenced. Dube (along with his fellow ringleader, Mavudzi) was sentenced to 65 years imprisonment, his wife received 25 years, and Dube’s girlfriend, Ramone, was sentenced to 10 years.

The other co-accused, Rathete and Edward Shoniwa both received 15-year sentences, while the others involved – Audrey Radebe and Bongani Mbonani – were each given five years.

Heeectic.

[source:iol]