Two accused and two companies convicted for numerous counts of fraud and theft

Thabo Matthews Moeti (41); Azrago (Pty) Ltd; Mavuso Victor Kwababa (51) and Land Breeze Trading 623 (Pty) Ltd appeared before the Bloemfontein High Court on the 16 May 2023 and were found guilty on numerous counts of fraud; theft; money laundering and Contravention of Income Tax Administration Act. During the course of regulatory audit that was conducted at the Free State Department of Health in Bloemfontein, an audit team from the office of the Auditor General requested information on certain payments to service providers and subsequently raised issues and queries in relation to the procurement processes that were put in place during the appointment of service providers.

As a result, an internal investigation was conduct by the department where it was discovered that false and forged requests for payment advices were submitted during the period January 2011 until December 2015 to effect payments to service providers including Azrago (Pty) Ltd and Land Breeze Trading 623 (Pty) Ltd. Evidence could not be found to prove if the actual services were rendered by the suspected service providers to the Department of Health. The investigations also revealed that more that R8,7 million was paid to these entities and as a result the department suffered prejudice to that amount.

A case docket was registered and handed over to the Hawks’ Serious Commercial Crime Investigation team based in Bloemfontein for further investigation.

During 2021, all the involved accused were arrested and later released on bail. A trial date was set by the Bloemfontein High Court for the 16 May 2023. On the said date both service providers, Moeti who is the director of Azrago (Pty) Ltd and Kwababa, the director of Land Breeze Trading (Pty) Ltd pleaded guilty to receiving payments from the Department knowing they did not render the services being paid for.

The four accused were each sentenced as follows: Moeti was sentenced to five years imprisonment for fraud; five years imprisonment for money laundering and another five years for contravention of the Income Tax and Tax Administration Act. All charges will run concurrently and wholly suspended for five years, on conditions that the accused is not found guilty of fraud, money laundering. He was also declared unfit to possess a firearm.

Azrago (Pty) Ltd was sentenced to five years imprisonment for fraud; five years imprisonment for money laundering; another five years imprisonment for two counts of contravention of Income Tax Administration Act and was also given a fine of R100 000-00. All charges will run concurrently and wholly suspended for a period of five years on conditions that the accused is not found guilty on fraud; money laundering and contravention of Income Tax Administration Act during the period of suspension.

Kwababa was sentenced to five years imprisonment for theft and another five years imprisonment term for two counts of money laundering. All charges will run concurrently and wholly suspended for a period of five years on conditions that the accused is not found guilty on fraud, money laundering and administration of the Income Tax Act during the period of the suspension. The accused was also declared unfit to possess a firearm.

Land Breeze Trading 623 was sentenced to five years imprisonment for theft; five years imprisonment for two counts of money laundering; sentenced to five years imprisonment for two counts of contravention of Income Tax Administration Act and was given a R100 000 fine. All charges will run concurrently and wholly suspended for a period of five years on conditions that the accused is not found guilty on fraud, money laundering and administration of the Income Tax Act during the period of the suspension.

The case against the other involved accused in the same matter is still ongoing. They will appear before the Bloemfontein High Court for trial which will commence from the 04 to 20 March 2024.

Source: South African Police Service