Mziwakhe Khumalo, 33, a former bank employee, has been sentenced to 15 years in jail for fraud, money laundering, and contravention of the Electronic Communication and Transaction Act 25 of 2002. The sentencing was handed down by the Gqeberha New Law Court on August 8.
According to Ndiphiwe Mhlakuvana, spokesperson for the Directorate for Priority Crimes Investigation (known as the Hawks), Khumalo’s sentencing followed his arrest by the Hawks’ Gqeberha Serious Commercial Investigation on September 29, 2021.
He appeared in court the same day and was granted bail. Khumalo’s co-accused, Lwando Dingiswayo, is also serving his term.
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Between 2017 and 2018, Khumalo and Dingiswayo unlawfully accessed and changed the contact information of a victim’s bank account in Germany without authorization. They further altered the signing authority on the account, transferring it to Dingiswayo.
They then opened a fraudulent cheque account and transferred funds from the victim’s investment account, resulting in a loss of R400,000. They attempted to defraud the victim of an additional R4.8 million, although these efforts were unsuccessful.
Khumalo made multiple court appearances before being formally sentenced. He received 15 years in prison for fraud, six years for money laundering, and one year for violating the Electronic Communication and Transaction Act 25 of 2002. All sentences will run concurrently, meaning Khumalo will serve a total of 15 years in direct incarceration.
