Smangaliso Innocent Khoza (40), a director of four companies , was found guilty and convicted by the Nelspruit Specialised Commercial Crime Court on Monday, 10 June 2024 for Contravening Section 6(a) of the Prevention of Organised Crime Act, Act 121 of 1998-money laundering, Contravening the provisions of Sections 235(1)(a) of the Tax Administration Act, Act 28 of 2011 and Contravening Section 4(b) read with Sections 1 and 8 of the Prevention of Organised Crime Act, Act 121 of 1998-money laundering.
It is alleged that during April 2017, the Hawks Nelspruit based Serious Commercial Crime Investigation carried forward an investigation referred to it by SARS. During the investigation, it was established that accused 1, Khoza was involved with the operations, in various capacities and roles, of four (4) entities: Simangalesi Trading Enterprise Cc; Madam and Eve General Trading CC; Khuzudumo Trading (Pty) Ltd; and Ngcebo Empire Projects (Pty) Ltd.
It further revealed that Khoza as a registered e-filer, was able to electronically submit returns on behalf of Simangalesi busizwe Trading Enterprises CC as well as Ngcebo Empire Projects (Pty) Ltd to the South African Revenue Service.
The accused was the only signatory on the business accounts of Simangalesibusizwe Trading CC, Ngcebo Empire Projects (Pty) Ltd, as well as both business accounts of Khuzudumo Trading (Pty) Ltd. The companies received undue refunds to the amount of R 990 297.75 for the 2013 tax year into its FNB business account.
During investigation, it was established that Busisiwe Prudence Nkosi (life partner of accused no 1 Khoza) is the sole member of Madam and Eve General Trading CC, registered as a Close Corporation and also registered at SARS as an e-filer. Madam and Eve General Trading CC (through Busisiwe Prudence Nkosi and Khoza) misrepresented SARS and failed to provide proof on the declaration made on the 2013 income returns in order to obtain undue tax refunds. Madam and Eve General Trading CC received an undue refund to the amount of R 986 686.12 for the 2013 tax year into its Standard bank business account.
Investigation also linked Sabelo Given Khumalo (the brother of Khoza), the sole director of Khuzumdumo Trading (Pty) Ltd, registered in terms of the Company Act and registered at SARS for income tax. Khusudumo Trading (Pty) Ltd (through Khoza) misrepresented to SARS and failed to provide proof on the 2013 income tax return to prove undue tax refund claimed.
Khoza, the sole director of Ngcebo Empire Projects (Pty) Ltd, registered in terms of the Companies Act and registered at SARS for business income tax.
Ngcebo Empire Projects (Pty)Ltd (through Khoza ) misrepresented to SARS and failed to provide proof on the 2014 income tax return in order to obtain undue tax refund, causing actual losses to SARS amounting to R 955 307.56 and R 990 297.75, as well as potential losses amounting to R 280 000.15, R 32 092 602.87 and R 9 625 228.59 whereas SARS froze the business bank accounts of some of these entities.
Various amounts were also transferred into different entities, business bank accounts, and personal bank accounts as proceeds of crime.
Khoza was convicted of the following charges Count 1: One (1) x count of Contravening Section 6(a) of the Prevention of Organised Crime Act, Act 121 of 1998-money laundering
Count 2 to 6: Five (5) x counts of Contravening the provisions of Sections 235(1)(a) of the Tax Administration Act, Act 28 of 2011.
Count 7 to 12: Six (6) x counts of Contravening Section 4(b) read with Sections 1 and 8 of the Prevention of Organised Crime Act, Act 121 of 1998-money laundering.
The case against Khoza was postponed to 23 August 2024 for pre-sentence and correctional supervision report, as well as sentence. The case against the other accused was set for trial from Monday, 10 June and 11 June 2024 whereas all witnesses were subpoenaed.
State Advocate submitted application for a confiscation order in terms of Section 18 of POCA. Investigation continues.
