A 40-year-old Mpumalanga businessman, Smangaliso Khoza, has been found guilty of fraud and money laundering amounting to over R2 million against SARS.
Meanwhile, Tiny Mtumba, a 36-year-old Congolese national, has been sentenced to 12 years and three months in prison for fraud, theft, and violations of the Immigration Act. Mtumba was sentenced this week at the Palm Ridge Specialised Commercial Crime Court.
The National Prosecuting Authority (NPA) confirmed that the sentencing follows an investigation led by Constable Mlaza, who uncovered Mtumba’s role in a criminal syndicate. The syndicate utilized fraudulent passports to open bank accounts and redeem offshore investments, defrauding South African residents and foreign nationals with investments abroad.
The criminals impersonated victims and funneled money into bank accounts opened in their names using forged passports. Mtumba, who was found to be in South Africa illegally, was arrested after ABSA Bank’s Exchange Control Monitoring and Reporting Department flagged a suspicious transaction exceeding R1.5 million.
Further investigation revealed discrepancies in Mtumba’s identity, confirming the use of a fake passport. The State Advocate, Rhyme Nchabeleng, argued that Mtumba was part of a larger syndicate targeting foreign bank accounts, abusing South Africa’s asylum-seeking provisions for personal gain.
Mtumba’s criminal activities resulted in a R1.5 million loss and caused significant financial damage to ABSA Bank, affecting both businesses and individuals. His actions also posed a serious threat to South Africa’s economic stability.
The sentence handed down to Mtumba serves as a strong message to others engaged in similar criminal enterprises.
NPA Regional Spokesperson, Phindi Mjonondwane, emphasized that the case highlights the continuous efforts of law enforcement to tackle financial crimes and protect the integrity of South Africa’s banking system.
