Sokopo's options: Pay a fine or go to jail

Update

GEORGE NEWS - A court case that has been dragging on for seven years, since October 2016, has finally been put to bed.

The sentencing of former Southern Cape secretary of the ANC, Mzwanele Major Sokopo (49), and a former South African Revenue Service (Sars) accountant, Ndileka Precious Mfunda (56), took place on Friday 26 January in the Thembalethu Regional Court.

Although both Sokopo and Mfunda have been acquitted of all charges of tax fraud and theft in May 2023, they were found guilty on charges relating to the contravention of the Tax Act, for which they were sentenced last week.

Sokopo has to serve two and a half years in prison or pay a fine of R20 000, as well as a further payment of R4 000. Mfunda has to serve one year in prison or pay a fine of R5 000. Major General Trading CC, the company owned by Sokopo, was handed a fine of R9 000.

Asked which route he would choose - jail time or a fine - Sokopo said he would probably go with the fine.

He then intimated that the actions he were charged for and eventually found guilty for were due to his ignorance of the relevant tax laws and not because of wilful intent.

"I am happy the matter is now finally closed," he said. "I can only wish that our government and municipalities, including Sars for that matter, will work on educating our small SMMEs on issues of taxation, with regard to registering for Vat and all those issues that are a responsibility of those SMMEs who are in business."

History
It was reported that the company entered into a contract with Bitou Municipality, Oudtshoorn Municipality and Ventersdorp Municipality to administer their tax returns and to submit them.

Mfunda was a Sars accountant who was hired by this company as a consultant. Her duties were to audit and interact with municipalities on behalf of Major General Trading CC.

Sokopo and Mfunda were summoned to appear in court by the Hawks' Serious Commercial Crime Investigation Team for alleged fraudulent claims to Sars from 2009 to 2014.

Closure at last
Asked if he will appeal, Sokopo said the legal team dealing with the matter will advise on a later stage, "but I don't think there is any discussion [of an appeal] as such".

Sokopo said his hope is that others would find better guidance with their businesses.

"I don't think that it must continue to happen that people are criminalised, or have to go through the process I went through. I would have expected our young democracy would have worked on educating our people, make our people aware, so that you don't get to be arrested for something that is omitted. Those departments that are relevant should assist in developing our people, so that the next person doesn't have to go through what I had to endure."

Summary of sentence
Major General CC and Major Sokopo were sentenced to a fine of R4 000 each. Sokopo was sentenced for Contravention of Section 104 of Income Tax Act on counts 47 to 49, all counts taken together for the purpose of sentence, to three years imprisonment or R30 000. Half of the sentence is suspended for five years, on conditions.

For Contravention of Section 59, Sokopo and Major General Trading CC were sentenced to R10 000 or 24 months imprisonment, of which R5 000 and 12 months is suspended for five years on conditions.

Mfunda was sentenced for Contravention of Section 59, all counts taken together to R5 000 or one year imprisonment.

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