The NPA has welcomed the conviction of a Gabonese national jailed for a R67 million VAT fraud scheme, warning that economic crimes will face prosecution and accountability.
Image: Timothy Bernard / Independent Newspapers
A Gabonese national has been jailed for an effective 10 years after defrauding the South African Revenue Service (SARS) of approximately R67 million through fraudulent Value-Added Tax (VAT) refund claims, the National Prosecuting Authority (NPA) said.
Andre Claude De Diguela, 54, was convicted in the Palm Ridge Specialised Commercial Crimes Court on 128 counts of fraud involving fraudulent VAT refund claims amounting to about R67 million and 66 counts of money laundering relating to approximately R10 million.
Under a plea and sentence agreement with the State, De Diguela was sentenced to 15 years’ imprisonment for the fraud charges, with five years suspended, and a further 10 years for the money laundering charges.
The sentences were ordered to run concurrently, resulting in an effective sentence of 10 years' direct imprisonment.
The NPA said De Diguela, the sole member of Assistance Medicale Internationale CC, carried out the fraud over a period of about 10 years by submitting forged medical invoices in support of VAT refund claims.
According to the authority, De Diguela falsely represented that his close corporation had facilitated medical treatment for foreign nationals at healthcare facilities in South Africa, enabling him to fraudulently claim millions of rand in VAT refunds from SARS.
The investigation, which commenced in 2024, was led by SARS investigator Dillo Nyaphudi.
During court proceedings, Senior State Advocate Marius Oosthuizen submitted that the fraudulent claims enabled De Diguela to unlawfully receive millions of rand from SARS, causing significant prejudice to the fiscus and undermining the integrity of South Africa's tax administration system.
NPA spokesperson Magaboke Mohlatlole said the successful conclusion of the case demonstrated the commitment of prosecutors and law enforcement agencies to combating sophisticated commercial crimes and protecting public resources.
"Tax-related offences not only prejudice the State financially but also divert resources intended for the delivery of essential public services and socio-economic development," Mohlatlole said.
He said the conviction and sentence should serve as a warning to those involved in large-scale economic crimes.
"This conviction and sentence send a strong message that individuals who engage in large-scale fraud and money laundering schemes will be vigorously investigated, prosecuted, and held accountable for their actions," Mohlatlole said.
Mohlatlole said the matter also underscored the importance of effective collaboration between the NPA, SARS and other law enforcement agencies in detecting and prosecuting complex financial crimes.
"The NPA remains steadfast in its commitment to safeguarding South Africa's fiscal system, preserving the integrity of public institutions, and ensuring that perpetrators of economic crimes face the full consequences of the law," Mohlatlole said.
IOL News