Two remanded in custody after allegedly receiving R1 million fraudulent refund from Sars

Godfrey Thembokuhle Mgidi, aged 39, and 49-year-old Christina Ncazane Mgidi have been remanded in custody after they were arrested for allegedly defrauding Sars. Picture: Hawks Mpumalanga

Godfrey Thembokuhle Mgidi, aged 39, and 49-year-old Christina Ncazane Mgidi have been remanded in custody after they were arrested for allegedly defrauding Sars. Picture: Hawks Mpumalanga

Published Aug 17, 2023

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The Witbank Magistrate’s Court remanded Godfrey Thembokuhle Mgidi, 39, and 49-year-old Christina Ncazane Mgidi in custody after they appeared on charges of fraud, the Directorate for Priority Crime Investigation (known as the Hawks) said.

Mpumalanga spokesperson, Captain Dineo Lucy Sekgotodi said the two, who are related, appeared in court on Wednesday.

“It is alleged that on January 20, 2015, the two company directors of Siyophomele Trading Pty Ltd defrauded the South African Revenue Service (Sars) by unlawfully and intentionally submitting false documents to Sars, claiming undue refund amounting to R996,236,” Sekgotodi narrated.

The pair was remanded in custody and the case was postponed to August 22, for formal bail application.

Godfrey Thembokuhle Mgidi, aged 39, and 49-year-old Christina Ncazane Mgidi have been remanded in custody after they were arrested for allegedly defrauding Sars. Picture: Hawks Mpumalanga

In March, the Nelspruit Specialised Commercial Crimes Court sentenced 46-year-old Penelope Hlengiwe Khumalo to 10 years imprisonment after she was convicted on charges of fraud and corruption.

Former Sars official, Penelope Hlengiwe Khumalo has been found guilty of fraud and corruption. Picture: Hawks

At the time, Sekgotodi said Khumalo was a former employee of Sars.

“Penelope Hlengiwe Khumalo, 46, a former employee of the South African Revenue Service was found guilty and sentenced on Tuesday, February 28, 2023 for fraud and corruption,” said Sekgotodi.

“The Nelspruit Specialised Commercial Crimes Court sentenced her after a lengthy investigation which revealed that in March 2010, the accused assisted VAT vendors to complete and submit fraudulent returns with the aim to receive undue refunds from Sars,” she said.

The Hawks said Sars suffered a loss of R550,000.

“The accused was sentenced to 14 years combined imprisonment on four counts of fraud. She was further sentenced to eight years collective imprisonment on two counts of corruption.

“Khumalo will effectively serve 10 years imprisonment without an option of a fine,” said Sekgotodi.

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