The Nelspruit Specialised Commercial Crime Court has sentenced Smangaliso Innocent Khoza, a director linked to multiple companies, for money laundering and tax evasion under South African tax law and the Prevention of Organised Crime Act (POCA).
Khoza, 40, faces hefty penalties, including a potential R2.5 million payment to the South African Revenue Service (SARS), and a R300,000 fine, or otherwise, jail time.
Khoza was initially implicated in 2020 along with seven others accused of tax fraud, theft, and money laundering, tied to fraudulent activities through companies that filed false tax returns.
Investigations revealed that Khoza and his partner, Busisiwe Prudence Nkosi, used a company under their control to submit falsified tax returns, causing over R2 million in financial losses to SARS.
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After his conviction, Khoza’s sentencing included several fines or prison terms for each offense. For the main charge of money laundering, Khoza received a five-year sentence, suspended on condition that he avoids further offenses.
Additional charges under the Tax Administration Act resulted in further fines, with some prison sentences wholly suspended if he repays SARS amounts totaling R554,085 and R1,980,595 over five years.
In addition, the court ordered the forfeiture of Khoza’s assets, with a request for a full review of his business interests to prevent future dealings with SARS.
Major General Nicholas Gerber, head of the Hawks in Mpumalanga, praised the investigation’s effectiveness, affirming the Hawks’ commitment to prosecuting financial crime.
The prosecution team expressed hope that this case would serve as a strong deterrent against similar fraudulent activities.