BUSINESSWOMAN SENTENCED TO 36 MONTHS DIRECT IMPRISONMENT FOR FRAUD

15 July 2025

BUSINESSWOMAN SENTENCED TO 36 MONTHS DIRECT IMPRISONMENT FOR FRAUD

Nelspruit, Mpumalanga - The Mpumalanga Specialised Commercial Crimes Court sitting in Mbombela sentenced Ms Philisiwe Miriam Pretty Lephoko (Ms Lephoko), the sole director of Premax Trading 43 CC, to 36 months' imprisonment for fraud in terms of section 276(1) (i) of the Criminal Procedure Act. Additionally, Premax Trading 43 CC was fined R100,000 for contravening the Tax Administration Act, wholly suspended for five years on condition that the accused is not convicted of fraud or theft.

Investigations revealed that in February 2019, Ms Lephoko submitted fraudulent Pay as You Earn (PAYE) returns to the South African Revenue Service (SARS), resulting in undue payments being made into the business bank account of Premax Trading 43 CC. Thus, financial prejudice to SARS and actual loss of R464,550.28. The fraudulent claim was uncovered during SARS audits, which led to the arrest of Ms Lephoko in 2023.

In court, Ms Lephoko pleaded not guilty and claimed to be a victim of cybercrime. However, Advocates Ntwanano Singwane and Kutullo Nyakane worked as a pair in the matter and led credible oral and documentary evidence from SARS and the bank. The State’s witnesses detailed the fraudulent PAYE returns supporting the claim and bank transactions on how Ms Lephoko transferred R200,000 from the business account of Premax Trading 43 CC into her account. The court found that the State witnesses were reliable and credible by rejecting the accused’s version of events.

In delivering the sentence, the court emphasised that Ms Lephoko, as the accused, showed no remorse and continued to shift blame with a theoretical defence that had no substance to take her matter further, despite the overwhelming evidence against her. The court also highlighted the prevalence of such crimes, emphasising the need for a firm response. The accused was sentenced accordingly.

The National Prosecuting Authority (NPA) welcomes the sentence as it demonstrates the justice system’s firm stance against tax-related fraud. This outcome underscores the importance of tax compliance in protecting public resources, ensuring effective revenue collection, and reinforcing public confidence in the enforcement capabilities of SARS and the broader justice system.

Issued by:

Monica Nyuswa

NPA Regional Spokesperson DPP Mpumalanga

Tel: 013 045 0625 / 076 485 5446

Email: mnyuswa@npa.gov.za