Pretoria – The Specialised Commercial Crime Court in Nelspruit has ordered businessman accused of fraud Collen Mlungisi Nkosi to pay back more than R 700 000 to the South African Revenue Service (SARS), in addition to a suspended five-year imprisonment with an option of a fine.
Hawks’ spokesperson in Mpumalanga, Captain Dineo Lucy Sekgotodi said Nkosi’s company Dlami Trading CC was fined R500 000, suspended for five years on condition that it is not involved in fraudulent activities again, after the businessman submitted false documents when he claimed R950 000, which he was paid by SARS on behalf of his company.
“The case of Dlami Trading CC and Collen Mlungisi Nkosi, 43 years of age, charged with fraud, theft or alternatively contravening the provisions of Section 235 of the Tax Administration Act, the Prevention of Organized Crime Act, Act 121 of 1998 prejudicing the South African Revenue Service, causing an actual loss amount of R950 000, was finalised in the Specialised Commercial Crime Court,” Sekgotodi said.
She said a guilty plea was tendered in court, which led to Nkosi and his company being found guilty and sentenced.
“Accused number 1, Dlami Trading CC was sentenced to R500 000, wholly suspended for five years on condition that the accused is not convicted and found guilty again of fraud or contravening section 4,5,6 and 8 of the Prevention of Organized Crime Act, and contravening Section 235 of the Tax Administration Act in the period of the suspended sentence,” Sekgotodi said.
“Accused number two, Collen Mlungisi Nkosi, director and sole member of Dlami Trading CC, in his personal capacity, was sentenced to R140 000 or five years imprisonment of which R100 000 or four years imprisonment suspended for five years on condition that accused not be convicted of fraud or contravening the Prevention of Organized Crime Act, and contravening section 235 of the Tax Administration Act, in the period of the suspended sentence.”
The court also ordered that Nkosi pay back the amount of R707 590 to the South African Revenue Service. Of that amount, the ordered Nkosi to pay at least R40 000 by Friday and the rest would be paid in instalments of R3 000 per month before the 7th of each month until the balance is paid off.
“The sentence followed the arrest by the Hawks’ Nelspruit-based serious commercial crime investigation on 8 March 2021 for fraud and theft after a warrant for his arrest was issued by the court,” Sekgotodi said.
“It was reported that in June 2017, the accused fraudulently submitted false Employee Tax Certificate (IRP 5) documents to South African Revenue Service, prejudicing the Revenue Service by claiming on behalf of his company, Dlami Trading CC, causing an actual loss of R950 090.07 to SARS.”
Nkosi had been on bail, before he was sentenced on Friday.
The accused appeared before the Nelspruit Commercial Court today and he was released on R20 000 bail until he was sentenced today. The trial of Nkosi and his company was separated from the other six co-accused and their case was postponed to June 1, “for their agreement to a Section 105 A guilty plea”.
Meanwhile, provincial head of the Hawks in Mpumalanga, Major General Zodwa Mokoena has commended the investigating officer in the matter.
IOL