A convicted fraudster from Mpumalanga narrowly escaped prison time after raising a significant sum on the day of his sentencing. Smangaliso Innocent Khoza, 40, was found guilty on 12 counts involving fraud and money laundering on November 8, 2024. The director of four companies defrauded the South African Revenue Service (Sars) of R2.1-million.
The Nelspruit Specialised Commercial Crime Court handed down a sentence that included a 15-year suspended prison sentence. He also had fines totalling R2.9-million imposed. Khoza avoided these by paying an immediate R300,000 into the Nelspruit magistrate’s court account. This as required by the court.
Raised R300k and paid it into court account
Provincial Hawks spokesperson Captain Dineo Sekgotodi confirmed the matter. She said that Khoza had indeed raised the R300,000 needed to avoid immediate incarceration.
“He managed to raise the amount,” said Sekgotodi. By securing this payment on sentencing day, Khoza was able to secure his freedom. He sidestepped what could have been years behind bars. The remaining sum is to be paid to Sars directly. And this allows him to avoid prison as long as he meets his financial obligations under the suspended sentence terms.
His suspended prison sentences, adding up to over 15 years, remain in place. This as a looming consequence should he fail to meet these financial commitments.
Co-accused to have their day in court
There are other individuals who are alleged to have benefitted from Khoza’s financial schemes. Their case has been postponed until November 26, 2024. This indicates further legal proceedings for those connected to his fraudulent operations.
Major General Gerber, Provincial Head of the Hawks, commented on the outcome. He noted that the sentence sends a powerful warning to potential fraudsters. About the repercussions of financial crime. It underscores the financial, legal, and reputational costs that Khoza now faces.
“As the Hawks, we shall carry out our mandate by preventing, combating and investigating all national priority crimes. Without fear or favour,” he said. “We believe that this type of sentence will send a clear message to those who would be fraudsters.”
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