A Gabonese national has been sentenced to an effective 10 years’ direct imprisonment after defrauding the South African Revenue Service (SARS) of approximately R67 million through a sophisticated Value-Added Tax (VAT) refund scheme that ran for nearly a decade.
The National Prosecuting Authority (NPA) said Andre Claude De Diguela (54), the sole member of Assistance Medicale Internationale CC, was convicted in the Palm Ridge Specialised Commercial Crimes Court on 128 counts of fraud involving fraudulent VAT refund claims worth about R67 million and 66 counts of money laundering involving approximately R10 million.
The fraud was carried out through the submission of forged medical invoices in support of VAT refund claims over a period of about 10 years.
In terms of a plea and sentence agreement with the State, De Diguela was sentenced to 15 years’ imprisonment on the fraud counts, five years of which were conditionally suspended, and 10 years’ imprisonment on the money laundering counts.
The court ordered the sentences to run concurrently, resulting in an effective sentence of 10 years’ direct imprisonment.
The investigation, which began in 2024, was led by SARS investigator Dillo Nyaphudi.
According to the NPA, investigators established that De Diguela fraudulently claimed VAT refunds by submitting forged medical invoices and falsely representing that his close corporation had arranged medical treatment for foreign nationals at healthcare facilities in South Africa.
During sentencing proceedings, Senior State Advocate Marius Oosthuizen argued that the scheme enabled the accused to unlawfully receive millions of rand from SARS, causing significant financial prejudice to the fiscus while undermining the integrity of South Africa’s tax administration system.
The NPA said the successful prosecution highlighted the commitment of prosecutors and law enforcement agencies to tackling sophisticated commercial crimes and protecting public funds.
“Tax-related offences not only prejudice the State financially but also divert resources intended for the delivery of essential public services and socio-economic development,” the prosecuting authority said.
It added that the conviction should serve as a warning that those involved in large-scale fraud and money laundering schemes would be aggressively investigated and prosecuted.
The NPA said the case also demonstrated the importance of collaboration between the prosecuting authority, SARS and other law enforcement agencies in detecting and prosecuting complex financial crimes, adding that it remained committed to safeguarding South Africa’s fiscal system and ensuring perpetrators of economic crimes face the full consequences of the law.
