Gabonese national jailed for 10 years over R67 million SARS VAT refund fraud

Court hears forged medical invoices were used to claim millions in fraudulent tax refunds

A 54-year-old Gabonese national has been sentenced to 10 years’ direct imprisonment after admitting to defrauding the South African Revenue Service (SARS) of approximately R67 million through fraudulent Value-Added Tax (VAT) refund claims.

The conviction follows a plea and sentence agreement reached with the State in the Palm Ridge Specialised Commercial Crimes Court, bringing an end to a case involving years of alleged tax fraud and money laundering.

Hundreds of charges

Andre Claude De Diguela, the sole member of Assistance Medicale Internationale CC, pleaded guilty to:

• 128 counts of fraud linked to fraudulent VAT refund claims worth approximately R67 million.
• 66 counts of money laundering involving around R10 million.

According to the National Prosecuting Authority (NPA), the offences were committed over a period of about 10 yearsthrough the submission of forged medical invoices to support VAT refund applications.

How the fraud worked

The NPA said De Diguela falsely claimed that his company had arranged medical treatment for foreign nationals at healthcare facilities in South Africa.

Using forged medical invoices as supporting documentation, he successfully claimed VAT refunds from SARS to which he was not legally entitled.

The investigation found that the fraudulent claims resulted in millions of rand being unlawfully paid out by the tax authority.

Sentence handed down

The court sentenced De Diguela to:

• 15 years’ imprisonment on the fraud charges, with five years conditionally suspended.
• 10 years’ imprisonment on the money laundering charges.

The sentences will run concurrently, meaning he will serve an effective 10-year direct prison sentence.

Investigation led by SARS

The case was investigated by SARS investigator Dillo Nyaphudi, with the investigation beginning in 2024, according to the NPA.

During sentencing, Senior State Advocate Marius Oosthuizen told the court that the fraudulent scheme caused substantial financial prejudice to the State and undermined confidence in South Africa’s tax administration system.

He argued that tax fraud of this scale directly affects public finances by diverting money intended for government programmes and essential public services.

NPA welcomes the outcome

The NPA said the conviction demonstrates the commitment of prosecutors and law enforcement agencies to tackling complex commercial crimes and protecting public funds.

Authorities also emphasised that tax-related crimes have consequences beyond financial losses. Fraudulent claims against SARS reduce the resources available for public services, infrastructure and socio-economic development.

Why VAT fraud is taken seriously

VAT refund fraud is considered one of the more sophisticated forms of financial crime because it involves manipulating the tax system to obtain money unlawfully from the State.

SARS has intensified efforts in recent years to identify fraudulent refund claims through advanced data analysis, forensic investigations and cooperation with law enforcement agencies.

The successful prosecution of De Diguela forms part of broader efforts to strengthen tax compliance and hold individuals accountable for crimes that undermine South Africa’s public finances.

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Source: iol.co.za