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CHANON LECODEY MERRICKS ONLINE EDITOR
COMPANY AND DIRECTOR SENTENCED FOR R993 000 VAT REFUND FRAUD
The National Prosecuting Authority (NPA) welcomes the sentencing of Hanson Distribution CC and its director, Hanson Ntjangase, following their conviction in a fraud case involving the submission of fraudulent Value-Added Tax (VAT) returns, which resulted in an illicit refund of R993 330.
The matter was heard in the Specialised Commercial Crime Court (SCCC), where the company and Ntjangase faced 10 counts of fraud. Ntjangase was also charged with contravening the Prevention of Organised Crime Act (POCA).
The court sentenced Hanson Distribution CC to a fine of R500 000, wholly suspended for five years, on condition that the company is not convicted of fraud during the suspension period.
Ntjangase was sentenced to a fine of R500 000 or five years' imprisonment, wholly suspended for five years, on the same condition. On the POCA charge, he was sentenced to a fine of R50 000 or one year's imprisonment.
The court heard that the company was registered for VAT and that Ntjangase was indebted to the South African Revenue Service (SARS) by approximately R180 000. While seeking assistance with his financial difficulties, he was introduced to two women who allegedly promised to help him raise funds. He subsequently provided them with the company's login credentials and access to its SARS tax profile.
Fraudulent VAT 201 returns were subsequently submitted, resulting in R993 330 being deposited into Ntjangase's bank account. Acting on instructions, he transferred funds to various bank accounts, with the transfers exceeding R700 000.
Ntjangase later changed his bookkeeper and regained access to the company's tax profile. He subsequently discovered that two additional VAT refunds were due to the company. Upon realising that the refunds were fraudulent, he reported the matter to SARS and requested that the payments be stopped and cancelled.
The fraudulent refunds were subsequently cancelled, and the matter was referred for investigation.
Ntjangase pleaded guilty and cooperated with SARS and the State.
He also repaid the amounts from which he had personally benefited. His cooperation includes an undertaking to testify against the remaining suspects, which is expected to assist the State in prosecuting other individuals allegedly involved in the scheme.
The NPA reiterates its commitment to combating fraud and financial crimes that undermine the integrity of South Africa's tax system and deprive the country of revenue required to deliver essential public services.
The NPA further acknowledges the role of the Honeybadger team in investigating and addressing financial crimes. The NPA remains committed to working with law enforcement agencies, SARS, and other stakeholders to ensure that those involved in fraudulent schemes are held accountable.
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