Syndicate faces 2 200 charges in Sars fraud

2012-07-02 18:47
A syndicate accused of defrauding the SA Revenue Service of more than R11m has gone on trial in the North Gauteng High Court where the 18 alleged members face more than 2 200 charges. <a href="">Shutterstock</a>

A syndicate accused of defrauding the SA Revenue Service of more than R11m has gone on trial in the North Gauteng High Court where the 18 alleged members face more than 2 200 charges. Shutterstock

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Pretoria - A syndicate accused of defrauding the SA Revenue Service (Sars) of more than R11m went on trial in the North Gauteng High Court in Pretoria on Monday.

The 18 alleged syndicate members, including three former Sars employees, face more than 2 200 charges of racketeering, money laundering, and fraud.

The State alleges former Sars employee Sydney Moyo, 44, of Soshanguve, had in the late 1990s devised a scheme to generate undue income tax refunds.

He allegedly recruited his wife Jane, who also worked for Sars, colleague Richard Bopape and other family members and friends.

Moyo worked as a messenger and petty cash administrator at Sars.

In 1995 he was transferred to the pay-as-you-earn department at his own request, where he had full access to the taxman's IRP5 books, systems and procedures.

The State alleges all of the accused, except Bopape, approached unemployed people in their communities and obtained a copy of their identity documents.

In most cases, the accused allegedly told people they could find them jobs, but needed a copy of their identity documents.

They then allegedly used their details to secretly register the unemployed people for income tax purposes, under the false pretence that they were earning salaries.

False tax returns and IRP5 certificates were then generated indicating that too much income tax had been deducted from each "taxpayer".

When a refund was authorised, a cheque was posted to post boxes leased or controlled by members of the syndicate.

In order to retrieve the cheques, the syndicate allegedly falsified the signature of the "taxpayer". A syndicate member then collected the cheque by claiming to be an "authorised recipient" acting on behalf of the "taxpayer".

One of the accused, Lucky Richard Mthembu, 33, was allegedly found in possession of computer hardware containing IRP5 templates.

The scheme allegedly ran for over six years before Sars became suspicious that so many people used the same post office box numbers.

The State on Monday began reading out the charges to the accused, which took a considerable amount of time as each charge had to be translated into three different languages.

Judge Mahomed Ismail turned down an application for transcripts of the trial record to be made available on a daily basis, in case some of the defence lawyers were not present in court, or had to withdraw from the trial.

The judge said his ruling should serve as a safeguard against lawyers being absent from court.

"I don't believe in rewarding bad students," he said.

The trial continues.


Read more on:    sars  |  corruption

The rich will pay - Mpofu

2014-04-24 22:14

Read News24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Inside News24


The rich will pay - Mpofu

The EFF in Gauteng will focus all its energy on improving the lives of the poor, the party's premier candidate Dali Mpofu says.


Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille
  • Tuesday Century City - 05:58 AM
    Road name: Ratanga Road Southbound
    ROADWORKS - lane closure between Ocean Spirit Avenue and Century Boulevard (until mid April)
  • Tuesday Mitchells Plain - 05:58 AM
    Road name: Spine Road
    ROAD CLOSED between Weltevreden Drive and Seafarer Drive due to roadworks (until mid April)
More traffic reports...

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Escape winter, head to Mauritius

Escape winter by spending 7 nights in Mauritius' tropical bliss from R13 215 per person sharing. Includes return flights, airport transfers and accommodation. Book now! - shop online today

Mother’s Day special offers!

Spoil mom with these awesome specials that will warm her heart. Shop now!

Twisp – the smoking alternative

Buy any 2 refills for R250 and save R149. Offer valid while stocks last. Shop now!

25% off bestselling books!

The Real Meal Revolution by Tim Noakes, Jeffrey Archer’s Be Careful What You Wish for, Man’s Search for Meaning by Victor E. Frank and many more titles. Shop now!

Mother’s Day specials on appliances

Browse our range of Mother’s Day appliances to spoil and pamper mom. Offer valid while stocks last. Shop now!

DStv HD PVR Decoder now R949

The DStv HD PVR Decoder has further revolutionised the television experience with lifelike viewing, sharper images, more vibrant colours and precision picture quality. Now R949, save R550. Offer valid while stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Nokia E7

Your mobile office Real-time emails with Mail for Exchange. Easy access to...

From R3499.00

I'm shopping for:


Treat yourself to something beautiful. You tend to put so much energy in making everything around you work harmoniously, more

There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.