Hawks Convict Malcolm Lesolang On Fraud Charges Over R7.4 Million VAT Scam

The Directorate for Priority Crime Investigation (Hawks) has secured a conviction for 58-year-old Malcolm Kgosietsile Lesolang, who was found guilty on seven counts of fraud.

Lesolang, who operated a fraudulent scheme involving the submission of fake Value Added Tax (VAT) invoices, was sentenced at the Palm Ridge Specialised Commercial Crime Court.

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The case, which was reported to the Johannesburg central police station in February 2022, involved fraudulent VAT claims that resulted in a financial loss of over R7.4 million to the South African Revenue Service (SARS).

Fraudulent VAT Claims Lead To Financial Loss For SARS

According to Lieutenant Colonel Lloyd Ramovha, spokesperson for the Hawks in Gauteng, Lesolang was found guilty of submitting fraudulent VAT invoices to claim VAT refunds he was not entitled to.

The fraudulent scheme led to a substantial loss for SARS, amounting to over R7.4 million.

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The court found Lesolang’s actions a direct violation of tax laws, undermining the integrity of the country’s tax system and its economic stability.

The court sentenced Lesolang to a fine of R100,000 or 10 years imprisonment, with the sentence suspended for five years, on the condition that no further fraudulent activities occur during this period.

This conviction serves as a reminder of the strict measures in place to combat tax fraud and protect South Africa’s revenue system.

Juristic Person Nompumelelo Investment Convicted On Multiple Counts Of Tax Evasion

In another separate case, a juristic person, Nompumelelo Investment and Holding Trading Pty Ltd, was convicted on 50 counts, including failing to submit VAT returns, Pay As You Earn (PAYE), Corporate Income Tax (CIT), and Income Tax Returns (ITR14) for the period from November 2020 to 2021.

The company’s directors failed to comply with tax regulations, resulting in a financial loss of R50,000 for SARS.

The company was sentenced to pay a fine of R50,000 as an admission of guilt for all the charges.

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Authorities Combatting Tax Evasion

Lieutenant Colonel Ramovha have noted that such criminal actions undermine the nation’s economic stability and hinder its growth.

The DPCI commended its investigative team for their dedication in bringing these offenders to justice, while also recognizing SARS for its vital role in identifying and reporting irregularities that led to these convictions.

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