Man sentenced for tax fraud

On Thursday, 18th April 2024, Clifford Ndlovu (40) and his two companies found themselves facing sentencing by the Nelspruit Specialised Commercial Crimes Court for 11 counts of Fraud and Contravention of Section 4,5 & 6 of the Prevention of Organised Crime Act, Act 121 of 1998 – Money laundering.

Between 2013 and 2017, Ndlovu served as the sole director of two companies, Mahathamile Trading cc (referred to as accused no 2) and Malatirhle Hire and Transport cc (referred to as accused no 3). During this time, fraudulent tax invoices were submitted to the South African Revenue Services for services that were never rendered, resulting in a total loss of R3 333 992.60 to the Revenue Service.

The matter was brought to the attention of the Hawks Nelspruit-based Serious Commercial Crime Investigation unit, who conducted a thorough investigation. Upon its conclusion, Ndlovu and his companies were summoned to appear in court.

The sentencing unfolded as follows:

Ndlovu (Accused no 1):

Counts 1-11: Fraud

10 years imprisonment, with half wholly suspended for 5 years

36 months correctional supervision

24-hour house arrest during correctional supervision

16 hours of community service per month

Attendance of treatment, development, and support programs

Count 12: Money laundering

5 years imprisonment, wholly suspended for 5 years

Declaration of being unfit to possess a firearm

Accused no 2 and Accused no 3:

Counts 1-6 (Accused no 2) and Counts 7-11 (Accused no 3): Fraud

R200 000.00 fine, with half suspended for 5 years

Count 12: Money laundering

R200 000.00 fine, wholly suspended for 5 years

Furthermore, it was noted that Ndlovu had already repaid the prejudiced loss amount to SARS. The Asset Forfeiture Unit (AFU) submitted an application for a confiscating order under Section 18 of POCA.

Major General Gerber, the Provincial Head of the Hawks, commended the team for their outstanding work in securing successful sentences and the seizure of proceeds.