Man accused of conning 145 people to steal from Sars

The state believes it has presented a water-tight case against an alleged fraudster accused of defrauding Sars of more than R1.2m in dodgy tax return claims filed on behalf of 145 public servants between 2008 and 2010.

The state wants Lusindiso Mhlwatika, 41, from Pietermaritzburg, to be sentenced to at least 15 years should he be found guilty, in line with the minimum prescribed sentence for such a crime.

Senior state prosecuting advocate Luthando Makoyi presented the state’s heads of argument at the conclusion of Mhlwatika’s trial in the East London magistrate’s court on Wednesday.

After having called more than 60 witnesses to the stand since the trial began in 2015, Makoyi told regional magistrate Deon Rossouw that the state had proved its case beyond reasonable doubt.

Rossouw is to deliver his verdict on February 28.

“The probabilities are favouring the state, compared to a defence of a bare denial given by the accused.

“More so when one considers that the witnesses have nothing to gain at this stage by lying about the accused, since most of them have already paid what they owed Sars,” he said.

Mhlwatika’s counsel, advocate Malcolm Sotenjwa, has argued the fraudulent information submitted to Sars’ electronic filing system on behalf of the 145 witnesses could have been entered by someone other than his client.

“It is respectfully submitted the state only raised suspicion against the accused,” he said.

Mhlwatika, who is facing 145 charges of fraud, was arrested in 2010. He is out on bail.

The state alleges that between 2008 and 2010, he approached taxpayers from East London, Cofimvaba, Ngcobo, Khowa (Elliot) and Komani, and convinced them Sars owed them money and that he should claim it from Sars on their behalf by posing as a tax consultant and practitioner from Sars.

He allegedly asked those not registered on Sars’ e-filing system to do so, then obtained their IRP5 forms, passwords and login names to gain access to their tax profiles.

It is the state’s case that Mhlwatika made false claims for specific income tax deductions.

He allegedly charged from R400 to R1,100 for his services.

Totals of R761,920 and R658,330 were deposited into his personal bank accounts and R13,460 into his business accounts, Magcwanini Trading and Projects CC.

He allegedly made claims to Sars totalling more than R1.58m, with R1.2m paid out to the taxpayers, many of whom have since paid Sars back.

The witnesses have nothing to gain at this stage by lying about the accused