Former Bank Worker Handed 22-Year Sentence For Fraud and Money Laundering in Gqeberha

The financial sector has been rocked by the conviction and sentencing of Mziwakhe Khumalo, a former bank employee who was embroiled in a substantial fraud and money laundering scheme. On August 8, 2024, the Gqeberha New Law court sentenced Khumalo to a cumulative 22 years in prison on counts of fraud, money laundering, and the violation of the Electronic Communication and Transactions Act.

Major General Mboiki Obed Ngwenya, the Hawks' Provincial Head, conveyed his satisfaction with the investigative team, whose diligence contributed notably to Khumalo's conviction. Arrested on September 29, 2021, Khumalo faced the courts immediately and was provisionally released on bail. His associate, Lwando Dingiswayo, is concurrently serving time for related offenses.

The meticulous criminal operation took place over 2017 and 2018 when Khumalo, alongside Dingiswayo, accessed and modified the contact details of a victim's bank account, while the legitimate account holder was in Germany. With unauthorized signing power, the duo successfully diverted R400,000 into a fraudulently established cheque account — coming perilously close to moving an additional R4.8 million before their plans were thwarted.

The Gqeberha New Law court handed Khumalo a direct 15-year sentence for fraud, a direct 6-year sentence for money laundering, and a direct 1-year sentence for contravening the Electronic Communication and Transactions Act, with the terms to run concurrently. Consequently, Khumalo's liberty has ended as he begins a 15-year jail sentence.

The case highlights the ongoing battle against financial crimes in South Africa and the role of the Hawks in ensuring such perpetrators are brought to justice.