FS fraudster gets 400 yrs
2008-08-20 09:56
Bloemfontein - A Free State businessman who played a leading role in an international crime syndicate, presumably run by a Namibian multi-millionaire, was handed a sentence of more than 400 years in jail.
Effectively, he will have to spend 20 years behind bars.
Judge AP Beckley found Richard Kabi, 46, a former hotel, bottle store and taxi owner of Phuthaditjhaba guilty on 30 charges of fraud, and of gangsterism and money laundering.
He is the first man to be found guilty of gangsterism in the Free State High Court.
Hearings in Namibia
During the long trial the court also for the first time incorporated hearings in Namibia.
Beckley sentenced Kabi to ten years for each of about a dozen of the fraud charges because the crimes were committed before the enactment of minimum mandatory sentences.
On another dozen or so fraud charges of R100 000 or more, Kabi received the mandatory minimum sentence of 20 years.
He was sentenced to 20 years for gangsterism and five years for money laundering.
His sentences of more than 400 years must coincide so that he will serve 22 years.
Between 1995 and 2000 Kabi or his associates ordered millions of rand's worth of vehicles, tyres, alcohol, and a big-screen TV from suppliers across the country in the name of large companies or fictitious enterprises.
Suppliers were paid with fake or invalid cheques, or were promised later payment.
Money swindled from Spanish government
Thousands of rands received by Namibia from the Spanish government was swindled from the Commercial Bank of Namibia and paid into private bank accounts.
Enterprises incurred losses of R3.4m and potential losses came to R10.4m.
Kabi used the names of the Free State Development Corporation, Lesotho Highlands Water Project, the Qwaqwa Development Corporation, Free State Consolidated Gold Mines, AngloGold Health Service and Goldfields Mining Developments, among others for the falsified orders.
Witnesses said the syndicate also has branches in Namibia and Lesotho.
Kabi's advocate Fanie Slabbert said that Kabi was going to appeal his conviction.
Kabi maintains he is innocent.
Beckley refused bail pending the application and Kabi was imprisoned on Tuesday evening.