Those committing white collar crimes are finally realizing the full force of the law. On Friday, 10 July, the South African Revenue Service (SARS) welcomed the conviction of Mr Andre Claude Dikoumba-de-Diguela.
Dicomba-de-Diguela had defrauded SARS of R62 million in value added tax (VAT) payments.
Gabon national sentenced to prison for tax crimes
Dicomba-de-Diguela, the only member of the Assistance Medical Internationale CC, confessed to 66 cases. Money laundering And 127 cases of fraud. The charges stem from fraudulent tax refund claims made by the company over 12 years.
According to the report of IOLDuring the sentencing hearing, the National Prosecuting Authority (NPA) revealed that the Gabon national had submitted fraudulent medical invoices to claim VAT refunds.
The NPA revealed that in order to claim refunds, the defunct corporation made false representations about the assistance it provided to foreign nationals seeking treatment in South African medical facilities.
The businessman entered a guilty plea in the Palm Ridge Specialized Commercial Crime Court.
As a result of the plea, he was sentenced to 10 years for money laundering and 15 years for fraud; Suspended for five years.
His sentencing followed an investigation launched by the Revenue Service in 2024.
SARS welcomes punishment
In media releaseSARS Commissioner Dr Johnstone Makhubu welcomed the sentence.
“SARS is working very hard to promote a culture of voluntary compliance,” Makhubu said.
The sentence comes as SARS increases its reliance on data, systems and partnerships to identify potential tax crimes.
In a media release, the Revenue Service reiterated its strong warning to those who knowingly submit false tax information. It highlights that those who engage in these fraudulent activities, including hiding income or overstating deductions, should expect prosecution.
The Commissioner also highlighted the impact of tax offenses on the economy.
“Every rand lost to fraud is a rand that could have been used to support economic growth, infrastructure, health care, education and other vital services,” Makhubu said.
He praised the sentence as “a legal breakthrough in the fight against corruption and crime prevalent in our country and state institutions…”