KEY POINTS
- Businessman and his company fined R10,000 ($549) for fraud.
- Over R1.2 million ($65,934) was stolen through fraudulent email transactions.
- Authorities stress the need for vigilance against financial fraud.
A 64-year-old businessman, Paul Okechukwu Mkporo, and his company, Giniokem Business Enterprises CC, have been fined for their involvement in a fraud scheme that defrauded Keypak (Pty) Ltd of over R1.2 million ($65,934).
The Specialised Commercial Crimes Court in Gqeberha, Eastern Cape, handed down the sentence after finding Mkporo and his company guilty of fraud.
Both were fined R10,000 ($549) each and received five-year suspended sentences for their roles in the elaborate scam.
The fraud, which took place between April 2018 and May 2019, involved manipulating company emails to authorize fraudulent payments.
Mkporo and his accomplices used a director’s email identity to convince the accounting department at Keypak to process payments for services that were never rendered.
How the Gqeberha fraud unfolded
According to Warrant Officer Ndiphiwe Mhlakuvana, spokesperson for the Hawks’ Serious Commercial Crime Investigation unit, the scam began with an email sent to Keypak’s accounting department.
“This email led to a payment of R136,765 ($7,514) being processed into a bank account belonging to one of the accomplices,” Mhlakuvana explained.
Just three days later, another email facilitated a second fraudulent payment of R234,235 (12,870).
The transactions continued, with another R225,273.59 ($12,377.77) paid into an account belonging to Goodness Nkosingphile Mthimkhulu, 36, who is also facing trial for related charges involving Sunny Blossom Construction and Projects CC.
Investigators later uncovered additional fraudulent transactions. They found that R200,000 ($10,989) was transferred to Sunny Blossom, and over R400,000 ($21,978) was deposited into Giniokem’s business account. The funds were immediately withdrawn and used for personal gain.
According to IOL, authorities confirmed that no goods or services were provided to Keypak by Mkporo or his company.
Court’s response and ongoing investigations
Following multiple court appearances, Mkporo and Giniokem were sentenced on March 12, 2025. Despite their guilty verdict, Mkporo continues to deny involvement in the fraud.
Mthimkhulu’s case persists despite ongoing investigational procedures involving further evidence examination.
State Advocate Matshidiso Ramakgaphola presented a victim impact statement from Keypak, highlighting the financial and operational strain caused by the fraud. The company noted that the losses severely disrupted its operations.
In response to the sentencing, Dr. Rachel Makhari, Director of Public Prosecutions in the Eastern Cape, expressed hope. She believes the ruling will deter similar crimes.
“This sentence sends a strong message that fraudulent activities will not be tolerated. We are committed to prosecuting financial crimes and ensuring justice for victims,” Makhari said.
The Hawks have reaffirmed their dedication to combating commercial crimes and ensuring that perpetrators are brought to justice.
