A Free State businessman who defrauded the Department of Employment and Labour has been sentenced in the Bloemfontein Magistrate’s Court.
Lelokonyane Isak Letseng, 44, and his companies Bophelo Botle Solutions (Pty) Ltd in Bloemfontein and Izuz Gibbor Pty (Ltd) were found guilty on fraud and money laundering charges.
The court heard Letseng fraudulently applied for Covid-19 Temporary Emergency Relief Scheme (TERS) from the period of March 1, 2020, to August 31, 2020, on behalf of people purported to be employees of Bophelo Botle Solutions.
The Unemployment Insurance Fund (UIF) made nine payments of R847,015.32.
Letseng then again applied for Covid-19 TERS from the second company, Izuz Gibbor for the period July 1, 2020, until October 31, 2021, on behalf of employees purported to be working at the company. The UIF made nine payments of R1,010,555. 92.
The matter was referred to the Directorate for Priority Crime Investigation (known as Hawks) for investigation which ultimately led to Letseng’s arrest.
He pleaded guilty to fraud and money laundering. Both charges were taken together for the purpose of sentencing. He was sentenced to 10 years imprisonment, wholly suspended for five years on condition that he is not convicted of fraud, theft or any crime involving dishonesty.
He was instructed to repay the complainant [Department of Employment and Labour] R1,780,017.24, including 11.25% interest, within five years starting from November 1, 2024, with final payment on or before November 30, 2029.
On the money laundering charges, Letseng was sentenced to a fine of R10 million, wholly suspended for five years on condition that he’s not convicted of the same offence during the period of suspension.
Bophelo Botle Solutions was found guilty of fraud and fined R2 million, wholly suspended for five years on condition that the company is not convicted of fraud, theft or crime involving dishonesty.
The company was sentenced to a further R3 million fine for money laundering, wholly suspended for five years on condition that the company is not convicted of the same offence during the period of suspension.
The other company, Izuz Gibbor, was also found guilty of fraud and money laundering. It was sentenced to a fine of R2 million, wholly suspended for five years on condition that the accused is not convicted of fraud, theft or crime involving dishonesty during the period of suspension.
On the charge of money laundering, the company was fined R2 million, wholly suspended for five years on condition that the accused is not convicted of money laundering during the period of suspension.
IOL