Celebrity chef Lusizo Mvula Henna, known as Chef Sizo, has been sentenced to an effective 10 years’ imprisonment for submitting fraudulent VAT refund claims totalling R5.3 million.
Henna is the owner of Blaque Olive Private Chefs CC, which provides catering, events, and canteen services. There were no trading activities in Blaque Olive’s bank accounts resembling the VAT claims, the National Prosecuting Authority (NPA) said this week.
The South African Revenue Service (SARS) paid R3.1m in refunds into Henna’s business bank account in August 2019. He laundered the refund within 14 days by transferring the money to relatives, friends, and business associates, the NPA said.
He also transferred R500 000 from his business account to his personal account.
But SARS identified the refund claims for audit, and in November 2019, requested supporting documentation from Henna. He failed to submit any corroborating documents. The audit findings concluded that Henna claimed the VAT refunds fraudulently.
Henna was found guilty of six counts of fraud stemming from the fraudulent claims, for which he was sentenced to 10 years’ imprisonment. He was also found guilty of 14 counts of money laundering, for which he was sentenced to six years.
The Specialised Commercial Crimes Court sitting in Palm Ridge ordered that the sentences run concurrently, which means Henna will spend 10 years behind bars.
Prosecutor Advocate Marius Oosthuizen submitted that only direct imprisonment would be appropriate because crimes against the fiscus have a detrimental impact on the government’s ability to render services. It was further submitted that dealing harshly with those who commit financial crimes would improve the likelihood of South Africa’s removal from the Financial Action Task Force’s grey list.
Magistrate Phindi Keswa said Henna’s venture into “get-rich schemes” was unnecessary considering that he was “flourishing” in his business and was doing “extremely well”.
“It boggles the mind that someone who had done so well for himself would resort to this kind of criminal activity,” she said.
Keswa decided to deviate from the prescribed minimum sentence of 15 years’ imprisonment for fraud involving more than R500 000. The magistrate said she considered Henna’s personal circumstances, which included that he is 41 years old, has young children, and is a first-time offender.
Nevertheless, she said the court needed to impose a sentence that would deter others from committing the same crime.
“Most people think that people convicted of white-collar crime should be treated lightly due to the fact that there’s no violence involved. This kind of reasoning is always frowned upon in our higher courts and always met with huge criticism.”
Henna’s LinkedIn profile describes Chef Sizo as “the most well-kept secret among the rich and famous in South Africa” whose “busy schedule” is the result of referrals, not advertising. It says Chef Sizo has catered to guests ranging from White House representatives and the Polish president to the directors of organisations such as Merrill Lynch, Prudential, and Bank of America. It says he regularly caters for prominent individuals, such as President Cyril Ramaphosa, Jacob Zuma, and politician-turned-businessman Tokyo Sexwale.
In 2016, Henna opened Blaque Continental Bistro in Bryanston, Johannesburg.
