BUSINESSMAN WAS CONVICTED AND SENTENCED FOR MONEY LAUNDERING

BUSINESSMAN WAS CONVICTED AND SENTENCED FOR MONEY LAUNDERING

The Mokopane Regional Court has convicted and sentenced a businessman Matlape Kholofelo Mphahlele (39) of khutso Kholofelo Trading CC to 6 years direct imprisonment. Between 30 May 2018 to 20 June 2018, Mphahlele allowed fraudsters to use his business accounts to receive proceeds of illegality amounting to R1.9 million. During the trial, accused initially pleaded not guilty, however, when the prosecution produced a flow of funds evidence, he changed his plea to guilty of 18 counts of acquisition, possession, and use of proceeds of illegality, in contravention of Section 6 of POCA 121 of 1998.

During the trial, the court further heard how the syndicate operated in their capacity as one suspect, a former ABSA, bank employee of the Bela Bela branch, Edgen Gundane, who is prosecuted separately for similar offences, allowed access to the account of the Lesotho Ministry, where an amount of R2.5 million was transferred to different banking accounts, including the account of Mphahlele.

In mitigation of the sentence, the defence lawyer of the accused submitted that the court should consider a deferred fine of R100 000. In aggravation of the sentence, State Advocate Sammy Mogoshi submitted that the accused committed a serious offence, which involved different role players and was motivated by greed. Even though an amount of R600 000 was frozen in his account, the bulk of the money was not recovered.

Mogoshi further told the court that fraud and money laundering pose a serious threat to our declining economy and cases of this nature are of national concern. There is a huge cry in the society that the courts must address money laundering by imposing appropriate sentences. He further submitted to court to impose a custodial sentence to deter the accused and other would-be offenders, from committing similar offences. The court agreed with the prosecution and meted the only appropriate sentence of a custodial to 6 years imprisonment sentence.

The prosecutions welcome the sentence and hope that the sentence would deter other would-be offenders from committing such crimes, and further restore confidence in the justice system. The Director of Public Prosecutions, Adv. Ivy Thenga congratulates the good work of Adv. Sammy Mogoshi and Investigating Officer. O ( W/O Van Aardt of DPCI LIMPOPO) .