TWO BUSINESSMEN AND THEIR COMPANIES PLEAD GUILTY OF FRAUD
BLOEMFONTEIN: Two businessmen and their dormant companies were handed suspended sentences by the High Court of South Africa: Free State Division after they pleaded guilty to charges of fraud, theft, and money laundering.
Judge Pitso Molitsoane sentenced Mathews Thabo Moeti (39) to five years for fraud, five years for money laundering and another five years for contravention of the Income Tax Act.
The sentences were wholly suspended for a period of five years on condition that Moeti is not found guilty of similar offences during the period of suspension. His company Azrago was handed a fine of R100 000 which is suspended for five years.
Mavuso Victor Kwababa (49) was handed five years for theft and five years for each of the two counts of money laundering he pleaded guilty on, and the sentences were also wholly suspended for five years on condition that he is not found guilty of similar offences during the period of suspension. His company, Land Breeze Trading 623 was also handed a fine of R100 000, suspended for five years.
The state alleges that officials from the Free State Department of Health approached Moeti and Kwababa and requested them to submit invoices to the department, as if they have rendered services. The officials approved a payment of R97 500 to Moeti and he was given R25 000 of that money and the rest allegedly went to the officials.
Kwababa submitted two invoices and he was paid R375 600 for the first invoice and R328 650 for the second invoice for accommodation services rendered to the department. He was given R65 000 of that money and the rest was paid to the officials.
Moeti and Kwababa submitted false invoices for accommodations and nursing conference services that were not offered to the department between November 2013 and February 2015.
The officials from the department are facing charges that include fraud, corruption, money laundering and contravention of the Public Finance Management Act and their case is set for trial from 04 to 20 March 2024 in the High Court of South Africa: Free State Division.
