| Culprit appeared in court for VAT fraud amounting to nearly R2 million | |
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| Date Published: | |
| 2026/05/04 | |
| Description Details: | |
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Media Statement EASTERN CAPE - KuGompo Hawks’ Serious Commercial Crime Investigation (SCCI) in collaboration with National Prosecuting Authority (NPA), has successfully executed a warrant of arrest against Mkhululi Ashley Mgwetana (50) implicated in a sophisticated value-added tax (VAT) fraud and contravention of Tax Administration Act on 4 May 2026. The accused appeared before KuGompo Magistrate’s court on the same day of his arrest. Mgwetana is the acquaintance to the director of Ali’s General Trading and Investments CC. It is alleged that over the period spanning from 2013 to 2016, Mgwetana was engaged in deliberate and unlawful conduct by misrepresenting material information to the South African Revenue Service (SARS). This was purportedly achieved through the manual compilation and submission of a fraudulent Value Added Tax (VAT) returns on behalf of Ali’s General Trading and Investments CC. In the submitted returns, on behalf of the business entity SARS picked up discrepancies and the matter was referred to the Hawks for a probe. Through these calculated misrepresentations, investigation established that SARS was induced to disburse an undue VAT refund of over R1.9 million into the bank account of the entity. Further investigative processes revealed that a portion of the illicit proceeds, was subsequently transferred into the personal bank account of the accused, thereby directly benefiting from the fraudulent scheme. Following his arrest, the accused appeared before court, where bail was granted in the amount of R5 000. The matter has been remanded to 28 May 2026 for legal representation. Ends
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