Accounting Weekly

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Wife Tips Off SARS, Leading to R200 Million Fraud Syndicate Sentencing

A VAT fraud syndicate that stole R200 million from the South African Revenue Service (SARS) was brought down after Jeremiah Musiwacho Dube's wife, Rebecca Dube, anonymously informed SARS about the illegal activities, according to www.iol.co.za. The South Gauteng High Court in Johannesburg has sentenced eight people involved in the syndicate.

From 2009 to 2015, the group, led by Jeremiah Dube, Maxwell Ndlovu Mavudzi, Boaz Chilala, and Sello Rathete, submitted fraudulent VAT returns, claiming they incurred expenses by importing and selling diesel. However, SARS paid out only R100 million of the R200 million claimed.

The case unraveled when Rebecca Dube reported her husband's affair and his lavish spending on his girlfriend, Moliehi Constance Ramone, whose lifestyle exceeded her salary at Hollard Insurance. This tip-off helped SARS track the syndicate and trace the funds.

Jeremiah Dube and Mavudzi each received 65-year sentences, while Rebecca Dube was sentenced to 25 years. Ramone received a 10-year sentence. Other members, Rathete and Edward Shoniwa, got 15 years each, and Audrey Radebe and Bongani Mbonani were sentenced to five years.