Latest news with #ContraventionoftheTaxAdministrationAct
IOL News
5 days ago
- Business
- IOL News
FEDUSA condemns lenient sentencing of businessman involved in R66 million fraud
A Gauteng businessman has been jailed for an effective five years in connection with R66million Transnet fraud. Image: File The Federation of Unions of South Africa (Fedusa) has welcomed the recent yet lenient sentencing of Gauteng-based businessman, Yakub Ahmed Suleman Bhikhu. Bhikhu was found guilty on 81 counts of fraud, forgery, uttering, money laundering, and the Contravention of the Tax Administration Act in the Pretoria Regional Court. According to the National Prosecuting Authority (NPA) Investigating Directorate Against Corruption (IDAC) spokesperson, Henry Mamothame, Bhikhu pleaded guilty and was sentenced to 10 years' direct imprisonment, of which five years were suspended for five years. IOL reported that the convicted businessman was further ordered to reimburse R300,000 to Transnet, which he received as gratification. In addition, his company was sentenced to a fine of R500,000, which was suspended on the condition that no similar offence is committed. The union, on Wednesday, said despite the light sentence imposed on the businessman, it fully supports and endorses the position taken by its affiliate, the United National Transport Union (Untu). "Like Untu, Fedusa is deeply concerned that the effective five-year sentence, following a conviction in one of South Africa's most egregious State Capture-related scandals, does not reflect the gravity of the crime nor the long-term damage inflicted on workers, the economy, and the integrity of public institutions," said Fedusa. The union added that Bhikhu's conviction for his involvement in facilitating corruption through his company, Homix (Pty) Ltd, at Transnet is a sobering reminder of the vast network of enablers, insiders, and private beneficiaries who exploited the parastatal for personal gain. This is in spite of the union's reservation about the severity of the sentence. "Fedusa believes the sentence handed down fails to deliver justice to the thousands of workers who continue to endure the consequences of this corruption, including job losses, infrastructure collapse, stagnant wages, and declining service delivery. This leniency sends the wrong message. It emboldens those who loot the state to believe they can walk away with light penalties while the public pays the price," the union stated. With South Africans bear the brunt of corruption in the private and public sectors as well as other sections of society, Fedusa believes a stronger sentence would have sent a better message to other corrupt businesspeople. "The sentence undermines confidence in our democratic institutions, particularly the National Prosecuting Authority and the judiciary, whose mandate is to protect the public interest and ensure accountability at all levels of society," it said. According to IOL, Bhikhu was last week jailed for an effective five years in connection with R66 million Transnet fraud, after he and his company, Homix (Pty) Ltd, were convicted on 81 counts that include fraud, forgery, uttering, money laundering, and the Contravention of the Tax Administration Act in the Pretoria Regional Court. [email protected]
IOL News
19-07-2025
- Business
- IOL News
Gauteng businessman jailed for R66 million Transnet fraud after 6 years on the run
A Gauteng businessman has been jailed for an effective five years in connection with R66million Transnet fraud. A Gauteng businessman has been jailed for an effective five years in connection with R66million Transnet fraud. Yakub Ahmed Suleman Bhikhu and his company, Homix (Pty) Ltd, were convicted on 81 counts that include fraud, forgery, uttering, money laundering, and the Contravention of the Tax Administration Act in the Pretoria Regional Court. According to the IDAC, Bhikhu pleaded guilty and was sentenced to 10 years' direct imprisonment, of which five years were suspended for a period of five years. He was further ordered to reimburse an amount of R300,000 to Transnet, which he received as gratification. His company was sentenced to a fine of R500,000, which was suspended on the condition that it does not commit a similar offence. Explaining the charges, the IDAC spokesperson, Henry Mamothame said: "This conviction is as a result of the commissioning of the 81 offences by Bhiku and his company during the period 2012 and 2015, valued at approximately R66 million, which was a loss to Transnet. "The Accused opened accounts at various banks and forex entities, on behalf of Homix, where at the time he was the sole director. "Payments stemming from Transnet were then paid into these accounts and dispersed to various other persons and entities by making use of fraudulent paperwork to execute fraudulent imports and exports. "In the process, the SARS, SAR,B and various private entities and banks were defrauded to allow the export of currency, which was proved to be illegal." The Accused was informed of the matter against him in about 2017. "He then evaded arrest for 6 years until he was apprehended on the border whilst trying to enter Botswana." The IDAC said he has been in custody since 2017. The NPA's IDAC welcomes the conviction and the direct imprisonment, coming from evidence that was presented in the State Capture Commission and further investigated by IDAC and its stakeholders in the law enforcement fraternity. IOL News
