Financial Crime World

Title: Nine Individuals Sentenced to Over 10,000 Years in Prison for Money Laundering and Fraud in South Africa

April 26, 2024

The South Gauteng High Court handed down a landmark sentence against nine individuals involved in a sophisticated money laundering and fraud scheme. The sentence ordered a combined total of 10,939 years in prison.

Background

  • Long-running investigation
  • 391 counts of money laundering, fraud, forgery, uttering, assisting another to benefit from unlawful activities, and acquisition, possession, or use of proceeds of unlawful activities
  • Contravened several acts, including regulations related to birth and death registration, the Identification Act, and the Prevention and Combating of Corrupt Activities Act

Fraudulent VAT Refunds

The defendants, who were members of various South African companies, submitted fraudulent Value-Added Tax (VAT) returns to the South African Revenue Services (SARS), claiming undue VAT refunds. They supported their submissions by forging and uttering invoices, which ultimately led to SARS paying R300 million into various banking accounts controlled by the accused.

Sentencing

Thirteen individuals were originally charged in the case, but two defendants passed away during the trial, and two others turned state witness. The sentences for the remaining nine are as follows:

  1. Jeremiah Nyasha Musiwacho Dube (59) - Zimbabwean male - sentenced to 3,376 years in prison (reduced to a servable term of 65 years)
  2. Rebecca Dube (51) - South African female - sentenced to 1,596 years in prison (reduced to a servable term of 25 years)
  3. Mavudzi Maxwell Ndlovu (59) - Zimbabwean male - sentenced to 3,272 years in prison (reduced to a servable term of 65 years)
  4. Moliehi Constance Ramone (44) - Lesotho female - sentenced to 953 years in prison (reduced to a servable term of 15 years)
  5. Edward Shoniwa (56) - Zimbabwean male - sentenced to 168 years in prison (reduced to a servable term of 15 years)
  6. Zamaswazi Audrey Radebe (51) - South African female - sentenced to 73 years in prison (reduced to a servable term of 5 years)
  7. Bongani Mbonani (42) - South African male - sentenced to 57 years in prison (reduced to a servable term of 5 years)
  8. Sello Atlone Rathethe (52) - South African male - sentenced to 1,557 years in prison (reduced to a servable term of 15 years)
  9. Christopher Dube (56) - Zimbabwean male - absconded before sentencing, and a warrant for his arrest has been authorized by the court

Impact

This investigation and resulting sentences underscore the commitment of law enforcement agencies, such as the DPCI and SARS, to combat financial crimes and protect the public’s trust in the financial system.