A Gabonese businessman has been sentenced to an effective 10 years in prison for defrauding the South African Revenue Service of approximately R67 million through a sophisticated tax refund scheme involving forged medical invoices.
Andre Claude De Diguela (54) was convicted and sentenced in the Palm Ridge Specialised Commercial Crimes Court on 128 counts of fraud and 66 counts of money laundering after operating the scheme for approximately 10 years.
The National Prosecuting Authority (NPA) said De Diguela, who was the sole member of Assistance Medicale Internationale CC, fraudulently claimed VAT refunds by submitting forged medical invoices to SARS. He falsely represented that his close corporation had facilitated medical treatment for foreign nationals at healthcare facilities in South Africa.
The fraud counts related to approximately R67 million in fraudulent VAT refund claims, whilst the money laundering charges involved approximately R10 million.
Under a plea and sentence agreement with the State, the court sentenced De Diguela to 15 years’ imprisonment on the fraud counts, with five years conditionally suspended, and 10 years’ imprisonment on the money laundering counts. The sentences will run concurrently, resulting in an effective sentence of 10 years’ direct imprisonment.
The investigation, which commenced in 2024, was led by SARS investigator Dillo Nyaphudi. During court proceedings, Senior State Advocate Marius Oosthuizen submitted that the fraudulent claims enabled De Diguela to unlawfully receive millions of rand from SARS, causing significant prejudice to the fiscus and undermining the integrity of the country’s tax administration system.
The NPA said the conviction demonstrates the commitment of prosecutors and law enforcement agencies to combating sophisticated commercial crimes and protecting public resources.
“Tax-related offences not only prejudice the State financially but also divert resources intended for the delivery of essential public services and socio-economic development,” said NPA spokesperson Magaboke Mohlatlole.
The case underscores the importance of collaboration between the NPA, SARS and other law enforcement agencies in detecting and prosecuting complex financial crimes.
