Company director arrested for multi-million VAT fraud in Eastern Cape

A 37-year-old company director has been arrested in an alleged large-scale Value Added Tax (VAT) fraud scheme amounting to R34.7 million.

Phakamani Joseph Takuta, together with Ilingelethu Trading and Projects (Pty), were arrested on 19 November 2025 and subsequently appeared before the Gqeberha Specialised Commercial Crimes Court (SCCC) on the same day.

Sars

Takuta was released on warning.

Hawks spokesperson Ndiphiwe Mhlakuvana said Takuta defrauded the South African Revenue Service (SARS).

“It is reported that during the period between 2022 and 2023, the accused submitted falsified VAT 201 returns to the South African Revenue Service. Thereafter, the revenue picked up discrepancies from the returns submitted and referred the matter to the Hawks for probing.

“The arrest follows extensive investigations into Ilingelethu Trading and Projects (Pty) Ltd, during which it emerged that the company, represented by the director, had allegedly submitted falsified VAT 201 returns to SARS,” Mhlakuvana said.

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Millions

Mhlakuvana said preliminary findings further indicated that the input tax claimed was neither truthful nor supported by legitimate business transactions.

“The amounts declared were ostensibly not based on valid invoices, and no actual trade had occurred during the relevant VAT periods.

“The alleged scheme sought to unlawfully obtain an undue VAT refund of over R34.7 million, thereby exposing SARS to a significant potential financial loss. The conduct reflects a deliberate and calculated attempt to defraud the national fiscus through the manipulation of the tax administration system,” Mhlakuvana said.

Mhlakuvana said the case was postponed to 16 January 2026 for legal representation.

ANC MP

Last month, Former ANC MP and convicted fraudster Manyaba Rubben Mohlaloga was ordered to report to the Pretoria Specialised Commercial Crimes Court to commence serving his 20-year prison sentence.

Mohlaloga, who was Chairperson of the Portfolio Committee on Agriculture and Land Affairs, was found guilty of fraud and money laundering in connection with an irregularly paid R6 million grant to an entity on the verbal instruction of the then CEO of the Land Bank, without following the requisite approval procedures.

Hawks spokesperson Colonel Katlego Mogale said the ANC MP, in his capacity as the then Chairperson of the Portfolio Committee, was among the individuals who personally benefited from the illicitly approved grant.

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