Construction company was fined R20,000 for VAT fraud.
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A Pietermaritzburg based construction company has been fined R20,000 after it was convicted of submitting fraudulent Value Added Tax (VAT) returns which resulted in the South African Revenue Service (SARS) losing almost R290,000.
The Mathuba Thuba Construction CC was convicted and sentenced by the Pietermaritzburg Magistrate’s Court in KwaZulu-Natatl on Thursday, March 27.
Directorate for Priority Crime Investigation (Hawks) spokesperson Warrant Officer Sibu Ncane said the company’s sole director, Goodman Ndodenhle Mbanjwa, 46, had allegedly submitted false VAT returns for the period of November 2019.
The fraudulent activity came to light after SARS conducted an internal audit and flagged the suspicious returns.
The matter was referred to the Hawks' Pietermaritzburg Serious Commercial Crime Investigation team for further action.
“The accused and his company were arrested and charged with fraud and contravention of the Tax Administration Act in October 2024,” said Ncane,
Following several court appearances, Mathuba Thuba Construction CC was found guilty and fined R20,000, while the charges against Mbanjwa were ultimately withdrawn.
The Provincial Head of the KZN Hawks, Major General Lesetja Senona, commended the investigating officers for their efforts and dedication.
In a separate but similar case, 58-year-old Malcolm Kgosietsile Lesolang was convicted on seven counts of fraud for submitting fake VAT invoices, causing SARS a loss of over R7.4 million.
The Palm Ridge Specialised Commercial Crime Court sentenced him to a R100,000 fine or 10 years imprisonment, suspended for five years. His company was fined R50,000.
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