A man who fraudulently claimed more than R1.8 million in VAT refunds after hijacking a company’s registration details has been sentenced to an effective seven years’ direct imprisonment.
The National Prosecuting Authority (NPA) South Gauteng spokesperson Magaboke Mohlatlole said 39-year-old Lufuno Matodzi was convicted and sentenced when he appeared in the Palm Ridge Specialised Commercial Crimes Court on 31 July 2026 on six counts comprising three counts of fraud and three counts of money laundering.
Mohlatlole said the court sentenced Matodzi to seven years’ direct imprisonment on the fraud counts and seven years’ direct imprisonment on the money laundering counts. The sentences will run concurrently, resulting in an effective seven-year prison term.
According to Mohlatlole, Matodzi’s crimes stemmed from his dealings with Coco Pure Manufacturing CC after the company’s owner, identified only as Mr Hassan, sought his assistance with submitting the company’s tax returns.
Instead of providing the requested assistance, Matodzi unlawfully amended the company’s records with the Companies and Intellectual Property Commission (CIPC), making himself the sole member of the close corporation.
Mohlatlole said Matodzi then used the South African Revenue Service (SARS) eFiling system to change the company’s public officer and banking details before submitting fraudulent VAT refund claims for the February, April and June 2019 tax periods.
The NPA said the scheme enabled Matodzi to fraudulently obtain VAT refunds totalling more than R1.8 million, which he transferred through various bank accounts to conceal the proceeds of the crime.
During sentencing, Senior State Advocate Phumlani Ntshangase argued that Matodzi had deliberately hijacked the company’s records to execute a sophisticated and premeditated fraud before laundering the proceeds.
Mohlatlole said the court agreed with the State’s submissions and imposed an effective seven-year sentence of direct imprisonment.
“The NPA welcomes the conviction and sentence, which underscore that tax fraud and money laundering are serious economic crimes that undermine the country’s revenue collection system and prejudice the public fiscus,” said Mohlatlole.
He added that the NPA remains committed to working closely with its law enforcement partners to ensure that those who defraud the fiscus are successfully prosecuted and held accountable.
