Key Points
- Mathuba Thuba Construction CC was fined R20,000 for fraudulent VAT returns, causing SARS to lose R290,000.
- Goodman Mbanjwa, the company director, had charges against him dropped.
- A similar case led to a R100,000 fine for VAT fraud and a R7.4 million loss for SARS.
-
A construction company in Pietermaritzburg, South Africa, has been fined R20,000 after being convicted for submitting fraudulent Value Added Tax (VAT) returns.
The fraudulent claims caused the South African Revenue Service (SARS) to lose nearly R290,000. The Pietermaritzburg Magistrate’s Court handled the case on Thursday, March 27, 2025.
Fraudulent VAT returns uncovered
The company, Mathuba Thuba Construction CC, submitted false VAT returns for the period of November 2019, leading to a significant loss for SARS.
The fraudulent claims were discovered when SARS conducted an internal audit and flagged the suspicious returns.
The matter was referred to the Hawks’ Serious Commercial Crime Investigation team in Pietermaritzburg for further investigation.
Goodman Ndodenhle Mbanjwa, the 46-year-old sole director of Mathuba Thuba Construction, allegedly submitted these false returns.
After several investigations and court appearances, the company was found guilty of VAT fraud. Mbanjwa’s charges were eventually withdrawn, and the company was fined R20,000.
Hawks commend officers for their work
Warrant Officer Sibu Ncane, spokesperson for the Directorate for Priority Crime Investigation (Hawks), confirmed the conviction and fine.
Major General Lesetja Senona, the Provincial Head of the KZN Hawks, praised the officers for their dedication and hard work in investigating the case and bringing it to a successful conclusion.
Similar cases of VAT fraud
In another related case, Malcolm Kgosietsile Lesolang, 58, was convicted of submitting fake VAT invoices. Lesolang’s fraudulent actions led to a loss of more than R7.4 million for SARS.
The Palm Ridge Specialised Commercial Crime Court sentenced him to a fine of R100,000 or 10 years in prison, with the sentence suspended for five years. His company was also fined R50,000.
