The court fined Mathuba Thuba Construction CC R20,000 after it was convicted of fraudulent VAT claims that cost SARS nearly R290,000.
Key Points:
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SARS fined a Pietermaritzburg construction company R20,000 for fraudulent VAT claims.
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Authorities implicated Goodman Ndodenhle Mbanjwa, the company’s director, in submitting false VAT returns.
- The Hawks and SARS collaborated on the investigation that led to the conviction.
A construction company based in Pietermaritzburg paid a fine of R20,000 after the court convicted it of submitting fraudulent Value Added Tax (VAT) returns. The fraudulent returns caused the South African Revenue Service (SARS) a loss of nearly R290,000.
Company Convicted for Fraudulent VAT Returns
The Pietermaritzburg Magistrate’s Court in KwaZulu-Natal convicted Mathuba Thuba Construction CC and sentenced it on Thursday, March 27. Warrant Officer Sibu Ncane, spokesperson for the Directorate for Priority Crime Investigation (Hawks), stated that the company’s sole director, Goodman Ndodenhle Mbanjwa, 46, submitted false VAT returns for the period of November 2019.
Fraudulent Activity Discovered by SARS Audit
SARS discovered the fraudulent activity after conducting an internal audit. Consequently, the audit flagged the suspicious returns thereby promoting the Hawks’ Pietermaritzburg Serious Commercial Crime Investigation team to investigate further. “The Hawks arrested the accused and his company, and they faced charges of fraud and contravention of the Tax Administration Act in October 2024,” said Ncane.
After several court appearances, the court found Mathuba Thuba Construction CC guilty and fined it R20,000. The court withdrew the charges against Mbanjwa.
Investigation Praised by Hawks’ Provincial Head
Major General Lesetja Senona, Provincial Head of the KZN Hawks, praised the efforts and dedication of the investigating officers. Their work led to the successful conviction.
In a separate but similar case, 58-year-old Malcolm Kgosietsile Lesolang, who had submitted fake VAT invoices actually caused SARS to lose more than R7.4 million. The Palm Ridge Specialised Commercial Crime Court convicted Lesolang on seven counts of fraud. The court sentenced him to a R100,000 fine or 10 years in prison, with the sentence suspended for five years. Moreover, his company also received a fine of R50,000.
