DUO ARRESTED FOR E10M LAUNDERING, TAX EVASION

MBABANE – Police have arrested two Asian businessmen for alleged tax evasion and money laundering, involving a sum of E10 million.

Ficha Irfan and Patel Abdulaziz and their company, Azmat Investments (PTY) Limited, are facing five charges of allegedly contravening the Valued Added Tax Act No.12 of 2011 and one of purportedly violating the Money Laundering and Financing of Terrorism (Prevention)  Act of 2011. They made their maiden court appearance at the Mbabane Magistrates Courts before Acting Magistrate Chakazile Thwala. In the first count, it is alleged that they unlawfully and intentionally made false or misleading statements through the company tax returns for the period of April to June 2022. It is alleged that the duo submitted to the Eswatini Revenue Service (ERS) and under-declared a total amount of E3 216 878.

Invoices

According to the charge sheet, the businessmen did this by allegedly altering invoices issued to Overborder Investments (PTY) Limited and in the process contravened the provision of the Act. It is further alleged that in October 2020, the duo applied the same tricks, in that they submitted to ERS and under-declared a total amount of E760 750 output tax. A business output tax is the Value Added Tax (VAT) that is charged on supplies of goods or services made to other businesses and consumers alike. In committing the aforementioned offences, it is alleged that the accused persons also purportedly altered invoices issued to Overborder Investments (PTY) Limited.  In January 20, 2023, the two businessmen, acting jointly in furtherance of common purpose, allegedly made a false and misleading statement through their company’s tax returns for the period of October to December 2022.  They are further said to have submitted to ERS and under- declared a total amount of E434 820 output by altering invoices issued to Explora Investments (PTY) Limited.

On April 20, 2023, they are alleged to have again applied the same modus operadi, in that they reportedly made a false or misleading statement, through their company tax returns for the period of January to March 2023. It is alleged that they submitted to ERS and under-declared a total amount of E1 894 786 output tax by altering invoices issued by Explora Investments (PTY) Limited and thereby contravened the provisions of the Act. The duo is said to have again violated the same Act, in that during the month of July 20, 2023, they unlawfully and intentionally made a false or misleading statement through their company tax returns for the period of April to June 2023.  

Under-declared

They are alleged to have submitted to ERS and under-declared a total amount of E3 702 647 output tax. It is alleged that they altered invoices issued to Explora Investments (PTY) Limited issued to Phone RUS (PTY) Limited. The last charge is that of having allegedly contravened the Money Laundering and Financing of Terrorism (Prevention) Act of 2011.
These are allegations whose veracity is yet to be tested in court. “It alleged that during the month of November 2023 near Mbabane, the accused persons jointly and acting in furtherance of a common purpose, in their capacities, knew or ought to have reasonably known that a sum of E10 million forms part of unlawful activities, to wit crime of tax evasion in connection with such property, which had or is likely to have effect of concealing, investing, managing and disguising, disposing the said sum of E10 million being proceeds of crime,” reads one of the charges. During their appearance at the Mbabane Magistrates Court, the Crown applied that they should be remanded in custody until January 19, 2024, pending committal to the High Court. They were represented by Sivesonkhe Ngwenya.

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