Millenium Travel And Tours (Pty) Ltd and Another v The Crown (C of A (CRI) 7 of 2011) [2012] LSCA 9 (27 April 2012)

IN THE COUR T OF AP PE AL OF LE S OTH O In t h e m a t ter b etween : C OF A (CRI) NO. 7 / 2 0 1 1 MILLE NIUM TR AVE L AND TOUR S (P TY) LTD F ir s t Ap p e lla n t a n d J AYAKR ISH NAN AP P UKUTTAN NAIR Se c o n d Ap p e lla n t R e s p o n d e n t a n d THE CR OWN Hea r d : Deliver ed : 1 1 Ap r il 2 0 1 2 2 7 Ap r il 2 0 1 2 COR AM: S MALBE RGE R J A S COTT J A FARLAM J A S UMMAR Y Cr im in a l la w – fr a u d – wh et h er m is r ep r es en t a t ion s a lleged p r oved - b r ib er y – wh et h er a m ou n t s p a id t o officia ls b r ib es or gen u in e loa n s – s en t en ce – wh et h er s en t en ces im p os ed b y t r ia l cou r t a p p r op r ia t e. J UDGME NT FARLAM J A [1 ] Th e fir s t a p p ella n t , Millen iu m Tr a vel a n d Tou r s (Pty) Ltd , t h e s econ d a p p ella n t, J a ya k r is h n a n Ap p u k u t ta n Na ir , a n d ‘Ma m olis e Ma r y Ka m oh i wer e a r r a ign ed in t h e High Cou r t b efor e Mofolo AJ a n d a n a s s es s or on 2 8 0 cou n t s of fr a u d r ela tin g t o t h e s u p p ly of tick et s for a ir tr a vel a n d t h e tr a n s p or ta tion of lu gga ge a n d ca r go t o th e Les ot h o Gover n m en t , t h r ee cou n ts of fr a u d r ela tin g t o t h e p u r ch a s e of for eign exch a n ge, on e cou n t of fr a u d r ela tin g t o t h e u n d er s t a t em en t t o t h e Receiver of Reven u e of t h e ta xa b le in com e of t h e fir s t a p p ella n t a n d fou r cou n ts of b r ib er y. [2 ] At t h e en d of t h e tr ia l Mr s . Ka m oh i wa s a cqu it ted on a ll t h e cou n t s . Th e two a p p ella n t s wer e a cqu itt ed on t h e fr a u d cou n ts r ela tin g t o t h e p u r ch a s e of for eign exch a n ge a n d t h e fou r b r ib er y cou n ts b u t con victed on a ll t h e ot h er cou n t s . Th e t r ia l cou r t s en t en ced t h e fir s t a p p ella n t on wh a t I s h a ll ca ll th e a ir tick et cou n t s t o a fin e of M6 5 1 ,3 4 9 a n d s en t en ced t h e s econ d a p p ella n t to a fin e of M3 ,0 0 0 ,0 0 0 or ten yea r s ’ im p r is on m en t . On wh a t I s h a ll ca ll t h e ta x fr a u d cou n t t h e fir s t a p p ella n t wa s s en ten ced t o a fin e of M2 3 0 ,7 8 1 a n d t h e s econ d a p p ella n t t o a fin e of M1 ,0 0 0 ,0 0 0 or 5 yea r s ’ im p r is on m en t . Th e a p p ella n ts h a ve a p p ea led a ga in s t t h eir con viction s a n d s en ten ces . Th e Cr own h a s cr os s -a p p ea led a ga in s t t h e a cqu it ta ls of t h e a p p ella n ts on t h e b r ib er y cou n t s a n d t h e s en t en ces im p os ed in r es p ect of t h e cou n ts on wh ich t h e a p p ella n ts wer e con vict ed . [3 ] On wh a t I h a ve ca lled t h e a ir tick et cou n t s t h e Cr own a lleged t h a t t h e a p p ella n ts h a d m is r ep r es en ted t h e cos t of t h e tick et s wh ich t h e fir s t a p p ella n t h a d s u p p lied to t h e Gover n m en t b y s u b m ittin g in voices wh ich r eflected wh a t wa s s ta ted t o b e t h e cos t of t h e a ir tick et or t r a n s p or ta tion of lu gga ge a n d ca r go for t h e p a s s en ger for wh om t h e tick et wa s s u p p lied , wh er ea s to t h e k n owled ge of t h e a p p ella n ts t h e a ctu a l cos t s of t h e tick et, tr a n s p or ta tion of t h e lu gga ge a n d ca r go con cer n ed wa s a lower a m ou n t wh ich h a d b een p a id t o t h e tr a vel a gen t , a ir lin e or ca r go com p a n y. In con s equ en ce of t h es e m is r ep r es en t a tion s , s o t h e Cr own a lleged , t h e Gover n m en t wa s in d u ced t o it s p r eju d ice to p a y t h e h igh er a m ou n ts s et for th in t h e in voices . [4 ] Th e a p p ella n ts wer e a lleged to h a ve d efr a u d ed t h e Gover n m en t b y fr a u d u len tly over ch a r gin g it in t h e m a n n er d es cr ib ed over a p er iod of t h r ee yea r s a n d t h e t ot a l a m ou n t b y wh ich it wa s over ch a r ged wa s M4 ,2 3 6 ,1 2 7 . [5 ] Th e t a x fr a u d cou n t r ela ted t o t h e 2 0 0 2 t a x yea r . It wa s a lleged b y t h e Cr own t h a t t h e a p p ella n t s fr a u d u len tly u n d er s t a t ed t h e fir s t a p p ella n t’s ta xa b le in com e b y a t lea s t M1 ,2 m illion . [6 ] On t h e b r ib er y cou n ts , on wh ich t h e a p p ella n ts wer e a cqu it ted , t h ey wer e a lleged to h a ve cor r u p tly m a d e p a ym en t s t o fou r officia ls , Ma ch es a , a ch ief a ccou n ta n t in t h e Dep a r t m en t of Hea lt h (wh o r eceived in tota l M7 0 ,0 6 0 fr om t h e a p p ella n ts ), Ra s et h u n t ś a , a n a ccou n ta n t in t h e Min is tr y of Fin a n ce (wh o r eceived in t ota l M1 7 ,6 2 0 fr om t h e a p p ella n ts ), Kh oloa n e, a lieu ten a n t colon el in t h e Defen ce For ce (wh o r eceived a t ot a l of M2 0 0 0 0 fr om t h e a p p ella n ts ) a n d Ma h a s e, a ca p ta in in t h e Defen ce For ce (wh o r eceived M8 9 ,4 6 8 fr om t h e a p p ella n ts ). [7 ] Th e Cr own ca s e a ga in s t t h e a p p ella n ts wa s b a s ed to a s u b s ta n tia l ext en t on d ocu m en ts t h e Cr own h a d ob ta in ed fr om t h e p r em is es of t h e fir s t a p p ella n t p u r s u a n t t o t h e execu tion of a s ea r ch wa r r a n t. Cop ies of t h e d ocu m en t s s eized wer e s u p p lied t o t h e a p p ella n ts ’ a t t or n eys b efor e t h e tr ia l b ega n a n d in t er m s of a n a gr eem en t b et ween cou n s el for t h e Cr own a n d t h e a p p ella n t s t h e d ocu m en t s wer e p la ced b efor e t h e cou r t wit h ou t p r oof. Th e a gr eem en t r es er ved t o b ot h s id es t h e r igh t t o ob ject t o t h e p r od u ction of a n y p a r ticu la r d ocu m en t , in wh ich even t t h e d ocu m en t wou ld h a ve to b e p r oved in t h e or d in a r y wa y b u t n eit h er s id e a va iled it s elf of t h is r igh t in r es p ect of a n y d ocu m en t . Du r in g t h e op en in g a d d r es s b y cou n s el for t h e Cr own r efer en ce wa s m a d e t o t h is a gr eem en t t h a t a ll t h e d ocu m en ta r y evid en ce wou ld b e p la ced b efor e t h e cou r t b y con s en t , a n d cou n s el for t h e d efen ce con fir m ed t h a t t h is wa s s o. [8 ] Dis cu s s ion s t ook p la ce b etween cou n s el for t h e Cr own a n d t h e a p p ella n ts in J a n u a r y 2 0 0 5 a n d a ga in in J u ly 2 0 0 6 . After t h e J a n u a r y 2 0 0 5 m eetin g t h e a tt or n eys a ctin g a t t h a t s ta ge for t h e a p p ella n t s m a d e wr it ten r ep r es en ta tion s to t h e Cr own in wh ich t h ey s et ou t t h e a p p ella n ts ’ d efen ce on t h e a ir tick et cou n ts . Wh a t t h ey s a id in clu d ed t h e followin g: a re with ch a r ged a ccu s ed ‘Th e fr a u d u len tly m is rep res en tin g to th e Gover n m en t th a t th e cos t of th e a ir tick et/ a ccom m od a tion / tr a n s p or ta tion of lu gga ge a n d ca r go for th e a m ou n t th e d ifferen t p a s s en ger s wa s in d ica ted on th e cor res p on d in g in voices . S ign ifica n tly, on n on e of th e releva n t in voices is it in d ica ted th a t th e a m ou n t a ir th e tick et/ a ccom m od a tion or tr a n s p or ta tion of lu gga ge a n d ca r go. We th e res p ectfu lly th erefore a ccu s a tion h a s n o s u b s ta n ce in la w. …… rep res en ted s u b m it th a t cos t th e of We a re in s tr u cted th a t th e fe es ch a r ged b y ou r clien ts d id n ot on ly in clu d e th e cos t of tr a vel, a ccom m od a tion a n d lu gga ge. It a ls o in clu d ed com p en s a tion for th eir tim e s p en t , for telep h on e ca lls , for th eir exp er tis e a n d for th eir p r ofes s ion a l s er vices , a m on gs t oth er s . In th e fin a l a n a lys is , it s h ou ld b e com m on ca u s e th a t over ch a r gin g p er s e d oes n ot con s titu te a cr im e, n eith er b y s ta tu te n or in com m on la w.’ Th e is s u e b etween t h e p a r ties on t h e a ir tick et cou n t s wa s d efin ed a t t h e J u ly 2 0 0 6 m eetin g a s b ein g ‘wh et h er t h e cla im s b y t h e [a p p ella n ts ] wer e fr a u d u len t a s a lleged b y t h e Cr own or gen u in e cla im s for s er vices r en d er ed a s a lleged b y t h e [a p p ella n ts ].’ [9 ] Th e s ign a tu r es a n d h a n d wr itin g of t h e s econ d a p p ella n t a n d Mr s . Ka m oh i (wh o it wa s a gr eed wa s a t a ll r eleva n t tim es in t h e em p loy of t h e a p p ella n t s a n d a cted in t h e cou r s e of s u ch em p loym en t) a s a p p ea r in g on t h e d ocu m en ts in t h e p r os ecu tion b u n d le wer e a d m itt ed . It wa s a ls o a d m itt ed t h a t t h e fir s t n in e p a r a gr a p h s of t h e Gen er a l Pr ea m b le t o t h e In d ict m en t wer e n ot in d is p u t e. Th ey r ea d a s follows : ‘1 . Accu s ed No. 1 is Millen iu m Tr a vel a n d Tou r s (Pty) Ltd (h erein a fter refer red to a s Millen iu m Tr a vel) a d u ly regis tered com p a n y in cor p or a ted on 1 1 Ma y 2 0 0 0 in ter m s of th e Com p a n y La ws of th e Kin gd om of Les oth o, with its p r in cip a l p la ce of b u s in es s a t Gr ou n d Floor , Agr ic Ba n k Bu ild in g, Kin gs wa y, Ma s eru . Th e d irector s of Millen iu m Tr a vel a re J AYAKRIS HNAN APPUKUTTAN NAIR a n d BE E NA J AYAKRIS HNAN NAIR. Mille n iu m Tr a vel op era ted a t in lea s t Les oth o: t wo b a n k a ccou n ts th eir n a m e in Ned b a n k Accou n t No. 0 2 1 0 0 0 0 2 1 8 3 8 S ta n d a r d Ba n k Accou n t No. 4 0 0 9 7 5 2 1 9 0 0 4 2 . 3 . 4 . Accu s ed 1 is rep res en ted h erein b y J AYAKRIS HNAN APPUKUTTAN NAIR, h is rep res en ta tive ca p a city for th e p u r p os es of Section 3 3 8 (2 ) of Act 9 of 1 9 8 1 . its Director , in Accu s ed No. 2 is J AYAKRIS HNAN APPUKUTTAN NAIR, a n a d u lt m a le, citizen of th e Rep u b lic of In d ia , h old in g In d ia n p a s s p or t n u m b er A1 2 6 3 1 0 6 p er m a n en tly res id en t in Tr iva n d r u m , In d ia a n d p res en tly res id in g a t 1 2 3 Ma lu ti Roa d , Ma s er u , in h is p er s on a l ca p a city. Accu s ed No. 3 is MAMOLIS E MARY KAMOHI, a n a d u lt fem a le, citizen of Les oth o, h old in g Les oth o p a s s p or t n u m b er N2 1 3 8 8 8 , a n d Sou th Afr ica n p a s s p or t n u m b er 4 3 7 9 4 3 9 7 6 , a n em p loyee of Millen iu m Tr a vel. 5 . Millen iu m Tr a vel, con d u cted b u s in es s a s a tr a vel a gen t, a n d a cted a t a ll tim es th r ou gh Accu s ed No. 2 , a n d / or Accu s ed No. 3 , a n d / or BE E NA NAIR. 6 . to th e Pr ior in cor p or a tion of Millen iu m Tr a vel, Accu s ed No. 2 wa s d u r in g th e p er iod 7 J a n u a ry 2 0 0 0 to 3 0 Ap r il 2 0 0 0 a d irector a n d s h a reh old er of E a s t Wes t Tr a vel a n d Tou r s (Pty) Ltd , a d u ly regis tered com p a n y in cor p or a ted on 2 6 Ma y 1 9 7 7 in ter m s of th e Com p a n y La ws of Les oth o a n d tr a d in g fr om Gr ou n d Floor , Agr ic Ba n k Bu ild in g, Kin gs Wa y S treet, Les oth o. Th e oth er d irector of E a s t Wes t Tr a vel a n d Tou r s (Pty) Ltd wa s V. D. G. NAIR. Accu s ed No. 3 wa s em p loyed b y E a s t Wes t Tr a vel a n d Tou r s . Pr ior to b ein g a p p oin ted a s a d irector on 7 J a n u a r y 2 0 0 0 Accu s ed No.2 wa s em p loyed b y E a s t Wes t Tr a vel a n d Tou r s (Pty) Ltd . 7 . Millen iu m Tr a vel fa cilita ted th e tr a vel a r r a n gem en ts of va r iou s govern m en t officia ls , b y b ook in g a n d p r ocu r in g a n d / or th e con veya n ce of freigh t a n d / or p er s on a l effects tick ets for tr a vel b y a ir , wh ereu p on th ey wou ld in tu r n , a n d for th es e s er vices , in voice th e releva n t d ep a r tm en ts with in th e Gover n m en t of Les oth o, for p a ym en t. 8 . Millen iu m Tr a vel wa s n ot is s u ed tick et, wou ld regis tered with th e In ter n a tion a l As s ocia tion of Tr a vel Agen ts (IATA), a n d cou ld n ot is s u e th es e tick ets for a ir tr a vel th em s elves . Th e a ir tick ets were ob ta in ed fr om va r iou s tr a vel a gen ts s itu a ted with in th e Rep u b lic of S ou th Afr ica . Th e p a r ticu la r tr a vel a gen t in S ou th Afr ica wh o in voice th e Millen iu m Tr a vel for th e cos t of th e a ir tick et les s th e a m ou n t of a n y com m is s ion d u e to Millen iu m Tr a vel, wh o wou ld p a y to th e Sou th Afr ica n tr a vel a gen t, th e a m ou n t reflected on th e s a id in voice. S om e of th es e p a ym en ts were effected b y S WIFT tr a n s fer s fr om th e a b ovem en tion ed b a n k a ccou n ts of Millen iu m Tra vel to th e S ou th Afr ica n tr a vel a gen t. Oth er p a ym en ts were m a d e b y d eb itin g a n Am er ica n E xp res s Ca r d , Accou n t No. 3 7 6 8 0 1 1 1 9 6 2 1 0 0 8 7 6 4 3 in th e n a m e of Accu s ed No. 2 . 9 . Millen iu m Tr a vel wou ld in tu r n is s u e a n in voice for th e a ir tick et to th e releva n t d ep a rtm en t with in th e Gover n m en t of Les oth o, wh ich d ep a r tm en t wou ld a u th or ize a n d ca u s e to b e is s u ed a ch equ e a s p a ym en t of th e a m ou n t reflected in th e in voice in s om e in s ta n ces les s 5 % s ou r ce ta x. Th e in voices were a u th or ized b y Accu s ed No. 2 a n d / or Accu s ed No. 3 . Th e a m ou n ts reflected on th e in voices of Millen iu m Tr a vel to th e releva n t d ep a r tm en t of th e Gover n m en t of Les oth o were h igh er th a n th os e a m ou n ts reflected on th e in voices of th e Sou th Afr ica n tr a vel a gen ts a s b e in g th e cos t of th e a ir tick et.’ [1 0 ] On t h e b r ib er y ch a r ges it wa s a gr eed t h a t t h e p a ym en t s a s a lleged wer e n ot in d is p u te a n d t h a t wh a t wa s in is s u e wa s ‘wh et h er t h e p a ym en t s wer e cor r u p t, a s a lleged b y t h e Cr own , or gen u in e loa n s , a s a lleged b y t h e [a p p ella n ts ].’ [1 1 ] Du r in g t h e cou r s e of t h e Cr own ca s e cou n s el a p p ea r in g for th e a p p ella n ts la r gely b a s ed h is cr os s - exa m in a tion on t h e d ocu m en t s s eized a t t h e fir s t a p p ella n t’s p r em is es p u r s u a n t t o t h e s ea r ch wa r r a n t. [1 2 ] Du r in g t h e evid en ce of t h e s econ d a p p ella n t h is cou n s el h a n d ed in t h e s e a r ch wa r r a n t a n d s t a r ted qu es tion in g h im on it. Cou n s el for t h e Cr own t h en p la ced it on r ecor d , a s h e p u t it , t h a t t h e d ocu m en ts b efor e t h e cou r t wer e t h er e in t er m s of a n a gr eem en t b etween t h e p a r ties . Th e a p p ella n ts ’ cou n s el t h en s a id : ‘. . . m y lea r n e d fr ien d is cor r ect t h a t t h e d ocu m en ts t h ey h a ve p la ced b efor e cou r t a r e t h er e b y a gr eem en t.’ [1 3 ] On a p p ea l cou n s el for t h e a p p ella n ts con ten d ed (a ) t h a t t h e s ea r ch wa r r a n t h a d n ot b een la wfu lly is s u ed a n d (b ) t h a t it h a d n ot b een la wfu lly execu ted b eca u s e t h e fir s t a p p ella n t’s p r em is es h a d n ot b een s ea r ch ed a n d t h e d ocu m en ts s eized b y p ea ce officer s , t o wh om t h e wa r r a n t wa s a d d r es s ed , b u t b y officia ls of t h e Dir ect or a t e on Cor r u p tion a n d E con om ic Affa ir s wh o a r e n ot p ea ce officer s , a s t h is Cou r t h eld in Dir ect or a t e on Cor r u p tion a n d E con om ic Offen ces a n d Ot h er s v Dla m in i (C of A (CIV) 2 1 / 2 0 0 9 ), a n a s yet u n r ep or ted d ecis ion of t h is Cou r t d eliver ed on 2 3 Oct ob er 2 0 0 9 . Cou n s el s u b m itt ed t h a t in t h e cir cu m s ta n ces t h e d ocu m en ts s eized s h ou ld n ot h a ve b een a d m itt ed in evid en ce a n d t h a t t h e a p p ea l s h ou ld a ccor d in gly b e a llowed on t h is p oin t a lon e. [1 4 ] I d o n ot t h in k t h a t t h is s u b m is s ion s h ou ld b e u p h eld , in view of t h e a gr eem en t to wh ich I h a ve r efer r ed . In u n a m b igu ou s ter m s it wa s a gr eed t h a t t h e d ocu m en t s cou ld b e p la ced b efor e t h e cou r t . Cou n s el for t h e a p p ella n ts cr os s -exa m in ed t h e m a in wit n es s for t h e Cr own Mr . Wh ite, t h e for en s ic a ccou n ta n t wh os e r ep or t wa s b a s ed on t h em , on t h e s tr en gt h of t h e d ocu m en ts . No b a s is a ccor d in gly exis ts for h old in g t h a t t h ey s h ou ld h a ve b een exclu d ed a t t h e tr ia l. [1 5 ] Cou n s el for t h e a p p ella n ts a ls o r elied on t h e d efen ce for es h a d owed in t h e wr it ten r ep r es en t a tion s m a d e b y t h e a p p ella n ts ’ a t t or n eys to t h e p r os ecu tion a fter th e J a n u a r y 2 0 0 5 m eetin g, n a m ely t h a t a s t h e Cr own h a d fa iled t o p r ove t h e a llega tion in t h e in d ict m en t t h a t b y s u b m ittin g t h e in voices t h e a p p ella n ts h a d r ep r es en ted t h a t t h e a m ou n ts s et ou t t h er ein wer e th e cos ts of t h e tick ets . I d o n ot t h in k t h a t t h a t s u b m is s ion ca n b e u p h eld eit h er . It is tr u e t h a t t h e in voices d id n ot s a y in t er m s t h a t t h e a m ou n ts s et ou t t h er ein wer e t h e cos ts of t h e tick ets b u t t h a t is wh a t t h ey con veyed to t h os e to wh om t h ey wer e a d d r es s ed a n d th e s econ d a p p ella n t k n ew t h is . A s im ila r p oin t a r os e for con s id er a tion in City Cen ter Ma s er u Tr a vel Agen cy (Pty) Lt d v Th e Cr own LAC (2 0 0 7 -2 0 0 8 ) 3 9 3 . In t h a t ca s e t h e t r a vel a gen cy con cer n ed a ls o s en t in voices t o t h e Gover n m en t, con t a in in g a m ou n t s cla im ed in r es p ect of a ir tick et s s u p p lied t o t h e Gover n m en t , wh ich a m ou n ts wer e h igh er t h a n t h e tick et p r ice b u t wer e a lleged t o r ep r es en t ‘fees , com m is s ion s a n d / or ch a r ges t o wh ich t h e a gen cy cla im ed t o b e en titled .’ Th e d efen ce r a is ed h er e wa s a ls o r a is ed b y t h e a p p ella n t in t h a t ca s e a n d wa s d ea lt wit h a s follows b y Melu n s k y J A in p a r a 7 of t h e ju d gm en t of t h e Cou r t (a t 3 9 6 H – 3 9 7 C), a s follows : to b y a re th e th e th e a p p ella n t a m ou n t p a ya b le ‘[7 ] Now cou n s el for th e a p p ella n t s u b m itted th a t th e wor d “cos t” d oes n ot a p p ea r on a n y of th e in voices ; th a t th e Cr own ca s e wa s b a s ed on th e ter m s of th e in voices ; th a t th e m is rep res en ta tion s re lied u p on in th e in d ictm en t h a d th erefore n ot b een es ta b lis h ed . It is , of cou r s e, qu ite clea r th a t th e Cr own is b ou n d b y th e m is rep res en ta tion u p on wh ich it relies in th e in d ictm en t. See S v Hu go 1 9 7 6 (4 ) S A 5 3 6 (A) a t in voices It a ls o s eem s to m e th a t th e 5 4 0 G. s u b m itted s om ewh a t a m b igu ou s . Alth ou gh it is n ot s ta ted on a n y in voice a p p ella n t th a t rep res en ted th e cos t of th e a ir tick et refer red to th erein , th ere is a ls o n o in d ica tion th a t th e a m ou n t cla im ed in clu d ed ch a r ges over a n d a b ove th e tick et p r ice. It d oes n ot a p p ea r to m e, h owever , th a t th e p r os ecu tion ca s e is to b e lim ited s olely to th e in voices th em s elves with ou t rega r d to b a ck gr ou n d a n d s u r r ou n d in g cir cu m s ta n ces . Th e in voices were, a fter a ll, m erely on e a s p ect of b u s in es s tr a n s a ction s b etween a s u p p lier of s er vices a n d a cu s tom er . Con s equ en tly th is cou r t m igh t p r op er ly h a ve rega rd to th e rea s on a b le exp ecta tion s of th e gover n m en t a n d to th e in ten tion s of th e a p p ella n t, wh ile b y n o m ea n s ign or in g th e con ten ts of th e in voices wh ich , of cou r s e, a re of con s id er a b le im p or ta n ce. Bu t wh a t h a s to b e d ecid ed on a con s p ectu s of a ll th e evid en ce th e a p p ella n t’s gu ilt b eyon d rea s on a b le d ou b t.’ th e Crown es ta b lis h ed is wh eth er [1 6 ] In t h is ca s e t h e evid en ce r evea ls t h a t t h e a p p ella n ts r eceived p a ym en t vou ch er s fr om t h e Gover n m en t t oget h er wit h ea ch p a ym en t . In m os t ca s es t h e p a ym en t wa s d es cr ib ed a s b ein g for ‘p a ym en t of a ir tick ets ’. It wa s a ccor d in gly clea r t o t h e s econ d a p p ella n t t h a t t h e Gover n m en t t h ou gh t it wa s p a yin g t h e p r ice of t h e tick et s ; t h a t wa s wh a t ca n b e d es cr ib ed , t o u s e Melu n s k y J A’s la n gu a ge, a s th e ‘r ea s on a b le exp ect a tion ’ of t h e Gover n m en t . Th e s econ d a p p ella n t d id n ot h in g t o r em ove t h e Gover n m en t’s exp ect a tion in t h is r ega r d . He clea r ly in ten d ed it to con tin u e t o b elieve t h a t t h e a m ou n t s r eflected on t h e in voices it r eceived wer e in r es p ect of t h e cos t of t h e tick ets . It follows t h a t t h e Cr own ’s a llega tion t h a t t h e a p p ella n ts m is r ep r es en ted t h e cos t of t h e tick ets wa s es ta b lis h ed . [1 7 ] It is fu r t h er m or e clea r t h a t n o a m ou n ts wer e h on es tly in clu d ed t o cover ‘com p en s a tion for tim e s p en t, for telep h on e ca lls , for …. exp er tis e a n d for p r ofes s ion a l s er vices ’. I a gr ee wit h cou n s el for t h e Cr own ’s s u b m is s ion t h a t t h er e wer e n o s u ch ch a r ges a n d t h a t ‘t h is wh ole is s u e of s o-ca lled a d d ition a l ch a r ges wa s a n a fter t h ou gh t wh en t h e s econ d [a p p ella n t] wa s con fr on ted b y cla im s wh ich wou ld ot h er wis e clea r ly b e fr a u d u len t .’ [1 8 ] Th a t t h is is s o a p p ea r s , for exa m p le, fr om a con s id er a tion of t h e fa ct s r ela tin g to cou n t 2 5 . In t h is cou n t t h e Gover n m en t or d er for a ir tr a vel wa s d a ted 8 Au gu s t 2 0 0 0 . Th e a p p ella n ts ’ in voice for M3 2 ,8 2 7 is d a ted t h e s a m e d a y. Th e tick et wa s is s u ed on 1 0 Au gu s t 2 0 0 0 . Th e in voice fr om S u r e Tr a vel (wh o m a d e t h e b ook in g on b eh a lf of t h e a p p ella n ts ) is d a ted 1 5 Au gu s t 2 0 0 0 a n d r eflects t h e p r ice of t h e tick et a s M2 0 ,6 3 3 -7 0 . Th e over ch a r ge wa s M1 2 ,1 9 3 -7 0 for ‘wor k ’ ca r r ied ou t wit h in on e d a y, i.e. 8 Au gu s t 2 0 0 0 . [1 9 ] Wh ite’s a n a lys is of t h e over ch a r ge s s h owed a r a n ge of b et ween 5 a n d 2 8 0 p er cen t a n d t h a t t h er e wa s n o con s is t en t b a s is on wh ich t h e m a r k u p wa s a r r ived a t . Wh en t h e s econ d a p p ella n t wa s p r es s ed in cr os s - exa m in a tion on t h e t op ic of t h e a m ou n t s ch a r ged h e cla im ed t h a t h e k ep t a wor k s h eet in r es p ect of ea ch tick et a t t h e r eleva n t tim e a n d t h a t t h e wor k s h eet wa s in va r ia b ly a t ta ch ed to t h e fir s t a p p ella n t’s cop y of ea ch in voice. Wh en a s k ed to exp la in wh a t h a p p en ed t o t h es e wor k s h eets h e s a id t h ey wer e a m on g t h e d ocu m en ts s eized b y t h e officia ls of t h e Dir ect or a te on Cor r u p tion a n d E con om ic Offen ces a n d t h a t t h e d ocu m en ts s eized wer e ta m p er ed wit h in t h a t t h e wor k s h eets wer e r em oved b y t h os e wh o t ook p a r t in t h e s ea r ch . [2 0 ] Th is exp la n a tion is p a ten tly u n a ccep t a b le. Cop ies of t h e d ocu m en t s s eized wer e given t o t h e d efen ce yea r s b efor e t h e tr ia l b ega n a n d even b efor e t h e r ep r es en ta tion s to wh ich I h a ve r efer r ed wer e m a d e to t h e p r os ecu tion . At n o s t a ge b efor e th e s econ d a p p ella n t ga ve evid en ce wa s it s u gges t ed t h a t wor k s h eet s wh ich s h ou ld h a ve b een a t ta ch ed t o t h e in voices a n d t h u s p a r t of t h e r ecor d s s eized a n d wh ich clea r ly wou ld h a ve b een im p or ta n t for t h e a p p ella n ts ’ d efen ce h a d n ot b een m a d e a va ila b le. Fu r t h er m or e t h e exis ten ce of t h es e wor k s h eet s wa s n ot p a r t of t h e d efen ce ca s e u n til t h e s econ d a p p ella n t t es tified . No qu es tion s b a s ed on t h eir exis t en ce wer e p u t to t h e wit n es s es wh o tes tified in s u p p or t of t h e Cr own ca s e. It is clea r in m y view t h a t n o wor k s h eet s ever exis ted a n d t h a t t h e a lleged ext r a ch a r ges t o wh ich t h e s econ d a p p ella n t r efer r ed wer e figm en t s of h is im a gin a tion . [2 1 ] I a m a ccor d in gly s a tis fied t h a t t h e a p p ella n ts wer e cor r ectly con victed on t h e a ir tick et cou n ts . [2 2 ] I tu r n n ow to d ea l wit h t h e ta x fr a u d cou n t . Her e t h e fa cts wer e n ot in d is p u t e. It wa s n ot d is p u ted t h a t t h e fir s t a p p ella n t u n d er -d ecla r ed it s in com e for t h e fin a n cia l yea r en d ed 3 1 Ma r ch 2 0 0 2 b y a t lea s t M1 ,2 3 0 ,7 8 1 . In th e cir cu m s t a n ces of t h is ca s e a n u n d er -d ecla r a tion t o t h a t exten t cou ld n ot h a ve occu r r ed h on es tly. I s a y th is b eca u s e t h e fin a n cia l s t a t em en ts s u b m it ted t o t h e Receiver for t h e yea r in qu es tion d ecla r ed a n in com e of M3 4 8 ,9 7 0 - 0 0 wh ile op er a t in g exp en s es of M3 1 1 ,4 9 5 -0 0 wer e cla im ed , r es u ltin g in a n et p r ofit of M3 7 ,4 7 5 -0 0 , wh ich wa s a m en d ed a fter cor r es p on d en ce wit h t h e Receiver t o M5 1 ,0 5 3 -0 0 . Th e a s s es s m en t r a is ed on t h a t figu r e wa s ta x p a ya b le in a n a m ou n t of M5 ,1 7 2 -3 0 . On t h e a d d ition a l M1 .2 m illion in com e t h e a d d ition a l t a x wou ld h a ve a m ou n ted t o a p p r oxim a tely M4 3 0 ,0 0 0 -0 0 . [2 3 ] Cou n s el for t h e a p p ella n t s s u b m it ted t h a t t h e a p p ella n ts s h ou ld n ot h a ve b een con victed on t h is cou n t. He r efer r ed t o th e fa ct t h a t wh en t h e Cr own in s tit u t ed p r oceed in gs a ga in s t t h e a p p ella n ts t h e Les ot h o Reven u e Au t h or ity (wh a t I s h a ll ca ll in wh a t follows ‘t h e LRA’) wa s in t h e p r oces s of a s s es s in g t h e a p p ella n t s , wh o s till h a d t o r ea ct t o t h e LRA’s a m en d ed a s s es s m en t . He con t en d ed fu r t h er t h a t t h e Cr own cou ld n ot p r op er ly in s t itu te cr im in a l p r oceed in gs a ga in s t t h e a p p ella n ts b a s ed p u r ely on wh a t h e ca lled ‘t h eir p r elim in a r y s elf-a s s es s m en t s u b m is s ion s t o t h e LRA’. [2 4 ] I d o n ot a gr ee. A t a xp a yer ’s t a x r et u r n ca n n ot b e r ega r d ed a s a n op en in g offer in a p r oces s of n egotia tion wit h t h e r even u e a u t h or ities , a im ed a t a r r ivin g a t t h e a m ou n t of t a x p a ya b le b y t h e t a xp a yer . Th e s t a t em en t m a d e in t h e r etu r n wa s clea r ly fa ls e a n d d is h on es tly m a d e wit h t h e in ten t of d efr a u d in g t h e r even u e a u t h or ities b y in d u cin g t h em to m a k e a n a s s es s m en t of t h e in com e ta x p a ya b le b y t h e fir s t a p p ella n t on t h e b a s is of t h e u n d er - d ecla r ed ch a r gea b le in com e of t h e fir s t a p p ella n t . Th e u n d er -d ecla r a tion wa s in d eed ca lcu la ted t o p r eju d ice t h e r even u e a u t h or ities . [2 5 ] It wa s n ot n eces s a r y for t h e Cr own t o a d d u ce evid en ce fr om a n y officia l fr om t h e LRA b eca u s e, a s cou n s el for t h e Cr own cor r ectly s u b m itt ed , t h e m a k in g of t h e m is r ep r es en ta tion com p let ed t h e fr a u d : s ee R v Kr u s e 1 9 4 6 A. D. 5 2 4 . In th e cir cu m s t a n ces it is clea r t h a t t h e a p p ella n ts wer e cor r ectly con victed on t h e t a x fr a u d cou n t . [2 6 ] I tu r n n ow to t h e fou r b r ib er y cou n ts on wh ich t h e a p p ella n ts wer e a cqu itt ed . Th e d u ties of t h e fou r officia ls wh o, t h e Cr own a lleges , wer e b r ib ed b y t h e a p p ella n ts a ll in volved in t er a ctin g in s om e wa y or ot h er wit h t h e a p p ella n ts . Ma ch es a , wh o wa s t h e r ecip ien t of t h e p a ym en t s r efer r ed t o in t h e fir s t b r ib er y cou n t (cou n t 4 2 8 ) wa s t h e ch ief a ccou n ta n t in t h e Dep a r t m en t of Hea lt h , wh o wor k ed wit h t r a vel a gen t s s u ch a s t h e fir s t a p p ella n t . Ra s et h u n tś a , wh o wa s t h e r ecip ien t of t h e p a ym en t r efer r ed t o in t h e s econ d b r ib er y cou n t (cou n t 4 2 9 ), wa s a n a ccou n ta n t in t h e Min is tr y of Fin a n ce, wh os e d u ties en com p a s s ed a r r a n gin g tr a vel a b r oa d for m em b er s of t h e Min is tr y a n d t h e r eceip t a n d p a ym en t of t h e fir s t a p p ella n t’s in voices . Kh oloa n e, t h e r ecip ien t of t h e p a ym en t s r efer r ed t o in t h e t h ir d b r ib er y cou n t (cou n t 4 3 0 ), wa s a tt a ch ed to t h e Defen ce For ce h ea d qu a r t er s . His d u ties in clu d ed a r r a n gin g for tr a vel for m em b er s goin g a b r oa d for tr a in in g. Th e r ecip ien t of t h e p a ym en t s r efer r ed to in t h e fou r t h b r ib er y cou n t (cou n t 4 3 1 ), Ma h a s e, wa s a ca p ta in in t h e Defen ce For ce wh os e d u ties in clu d ed en s u r in g t h a t m em b er s tr a vellin g a b r oa d h a d t h e cor r ect vis a s . [2 7 ] It will b e r eca lled t h a t in t h e d is cu s s ion s b etween cou n s el for t h e Cr own a n d t h e a p p ella n t s b efor e t h e tr ia l b ega n it wa s a gr eed t h a t t h e is s u e b etween t h e p a r ties wa s wh et h er t h e p a ym en t s m a d e t o t h e fou r p er s on s m en tion ed in t h e b r ib er y cou n ts wer e cor r u p t, a s a lleged b y t h e Cr own , or gen u in e loa n s , a s a lleged b y t h e a p p ella n ts . In m y op in ion it is clea r t h a t u n les s t h e p a ym en t s (wh ich wer e n ot in d is p u te) wer e gen u in e loa n s t h er e is n o es ca p e fr om t h e con clu s ion t h a t t h ey wer e cor r u p t a s n o ot h er b a s is for t h eir b ein g m a d e h a s b een s u gges t ed . For th e r ea s on s t h a t follow I a m s a tis fied t h a t t h ey wer e n ot gen u in e loa n s . [2 8 ] To s t a r t wit h , if on e h a s r ega r d t o t h e t ota l a m ou n ts len t a s com p a r ed wit h t h e s a la r ies ea r n ed b y th e fir s t t h r ee r ecip ien ts it wa s u n lik ely t h a t t h e a m ou n t s p a id , if loa n s , cou ld h a ve b een r ep a id . Ma ch es a , wh o r eceived a m ou n t s tota llin g M7 0 0 0 0 fr om J a n u a r y 1 9 9 9 to Au gu s t 2 0 0 1 wa s ea r n in g M6 ,6 4 0 p er m on t h in J u ly 2 0 0 4 . Ra s et h u n tś a , wh o r eceived M1 7 ,6 2 0 b etween Ap r il 1 9 9 9 a n d Oct ob er 2 0 0 1 wa s ea r n in g M3 ,1 3 7 p er m on t h in J u ly 2 0 0 4 . Kh oloa n e, wh o r eceived M2 0 0 0 0 b etween Ap r il 2 0 0 2 a n d Ap r il 2 0 0 3 , wa s ea r n in g M3 ,0 6 1 p er m on t h in Feb r u a r y 2 0 0 5 . (Th e fou r t h r ecip ien t , Ma h a s e, wh o r eceived M8 9 ,4 6 8 b etween Oct ob er 2 0 0 0 a n d J u ly 2 0 0 3 , wa s ea r n in g M2 ,4 4 0 p er m on t h in Feb r u a r y 1 9 9 5 b u t n o evid en ce wa s p u t b efor e t h e cou r t a s t o wh a t h e ea r n ed a t t h e tim e h e r eceived t h e p a ym en ts r efer r ed to.) [2 9 ] Am on g t h e d ocu m en t s s eized a t t h e fir s t a p p ella n t’s p r em is es wer e p a ym en t vou ch er s r eflectin g a m ou n t s a s loa n s t o va r iou s p er s on s . On t h e vou ch er s wh er e t h e n a m es of t h e r ecip ien t s on t h e b r ib er y cou n t s a p p ea r t h er e is n o in d ica tion of t h e p a ym en t b ein g loa n s . As cou n s el for t h e Cr own cor r ectly s u b m it ted , ‘if s u ch d et a iled n ot es wer e k ep t of loa n s m a d e in s m a ll a m ou n ts , t h en s u r ely if t h e p a ym en t s in r es p ect of t h e b r ib er y cou n t s wer e in d eed loa n s , t h en t h ey wou ld s im ila r ly h a ve b een r ecor d ed on t h e p a ym en t vou ch er s a s loa n s , p a r ticu la r ly b ea r in g in m in d t h e t ota l a m ou n t in volved , M2 2 0 ,0 4 8 -4 9 .’ Th e tota l a m ou n ts a lleged ly len t wer e a ls o n ot r eflected a s loa n s in t h e fir s t a p p ella n t’s ta xa tion a n d fin a n cia l r ecor d s , wh ich is s om et h in g on e wou ld h a ve exp ect ed if t h ey h a d b een loa n s . [3 0 ] Fu r t h er m or e t h e t h ir d a ccu s ed tes tified t h a t on a n u m b er of occa s ion s t h e fou r p er s on s m en tion ed in t h e b r ib er y cou n t s ca m e t o t h e office, wen t in to t h e s econ d a p p ella n t’s office a n d la ter t h e s econ d a p p ella n t ca m e ou t wit h t h em a n d in s tr u cted h er to p a y t h em m on ey, a fter wh ich t h e r eleva n t p a ym en t vou ch er s h a d t o b e en d or s ed ‘BP’. Accor d in g to t h e s econ d a p p ella n t t h e let ter s ‘BP’ s t ood for ‘b u s in es s p r ogr a m m e’, t h ou gh h e con ced ed t h a t t h ey m igh t h a ve s t ood for ‘b u s in es s p r om otion ’. [3 1 ] Th e s econ d a p p ella n t a lleged t h a t t h e a d va n ces m a d e to Ma ch es a wer e a ll r ep a id . He s a id h e k ep t a ca r efu l r ecor d of t h es e p a ym en t s a n d t h eir r ep a ym en t . Th is r ecor d wh ich is d a ted 2 1 Feb r u a r y 2 0 0 5 wa s h a n d ed in a s E xh ib it BB. Th e la s t t wo a lleged r ep a ym en ts , wh ich wer e s a id t o h a ve b een m a d e b y Ma ch es a a ft er h e r etir ed , wer e a lleged ly m a d e b y wa y of two S ta n d a r d Ba n k ch equ es of wh ich t h e n u m b er s wer e s ta ted . Th e s econ d a p p ella n t wa s u n a b le to exp la in wh y h is b a n k r ecor d s d o n ot r eflect t h es e p a ym en t s . Th e r ep r es en ta tion s m a d e b y h is a t tor n eys on 1 Ma r ch 2 0 0 5 , eigh t d a ys a fter t h e d a te on E xh ib it BB, d o n ot r efer to t h es e r ep a ym en t s , a n ot h er a s p ect t h e s econ d a p p ella n t cou ld n ot exp la in . Accor d in g t o t h e s econ d a p p ella n t t h e a m ou n ts p a id t o Ma ch es a wer e loa n s in r es p ect of h is s on ’s s t u d ies a t t h e Un iver s ity of Ca p e Town . Bu t t h e a m ou n ts r a n ged fr om M5 0 t o M1 0 0 to M1 ,0 0 0 t o M5 ,0 0 0 . As cou n s el for t h e Cr own s u b m itt ed t h ey wer e clea r ly p et ty ca s h a d va n ces , wh ich m or eover wer e m a r k ed ‘BP’ on t h e a p p ella n ts ’ ca s h p a ym en t vou ch er s . Ma ch es a tes tified for t h e Cr own a n d s a id t h a t on e of t h e a m ou n ts h e r eceived wa s M3 0 ,0 0 0 wh ich h e r ep a id a ft er two or t h r ee d a ys . Th e p u r p os e of t h e p a ym en t wa s s o t h a t Ma ch e s a cou ld p r ove t o t h e u n iver s ity t h a t h e h a d s u fficien t fu n d s t o fin a n ce h is s on ’s s t u d ies . No tr a ce of a n y r ep a ym en t s fr om Ma ch es a wa s fou n d in t h e a p p ella n ts ’ r ecor d s . [3 2 ] Ma ch es a s a id t h e s econ d a p p ella n t ga ve h im s u m s of m on ey, a p a r t fr om t h e M3 0 ,0 0 0 , a s p r es en ts . Wh en a s k ed wh y h e t h ou gh t t h e s econ d a p p ella n t ga ve h im t h es e p r es en ts h e s a id h e t h ou gh t it wa s t o tr ea t h im well a n d t h a t h e d id tr ea t h im well, b y p a yin g h is in voices tim eou s ly. He a d d ed t h a t h e d id t h e s a m e for ot h er a gen ts a s well. It is of cou r s e tr it e la w t h a t it is a cr im e t o b r ib e a n officia l t o d o h is d u ty. See R v Pa t el 1 9 4 4 AD 5 1 1 a t 5 2 2 a n d S v Va n d er Wes t h u izen 1 9 7 4 (4 ) S A 6 1 (C) a t 6 3 D-F. [3 3 ] As I h a ve s a id , it wa s n ot d is p u t ed t h a t t h e s econ d a p p ella n t p a id s om e M8 9 ,0 0 0 t o Ma h a s e over a p er iod of t h r ee yea r s . Th e s econ d a p p ella n t, d ep a r tin g fr om t h e a gr eem en t b et ween h is cou n s el a n d cou n s el for t h e C r own t h a t t h e is s u e on t h is cou n t a s on t h e ot h er b r ib er y cou n t s wa s wh et h er t h e a m ou n ts h e p a id wer e ‘gen u in e loa n s ’, s a id t h e a m ou n ts h e p a id t o Ma h a s e cou ld b e for va r iou s r ea s on s , s om e of wh ich h e cou ld n ot r eca ll. Am on g t h e a m ou n ts h e ga ve Ma h a s e wer e for p u r ch a s es of Afr ica n wood en h a n d icr a ft item s in Pr et or ia a n d for p igs a n d s h eep for b r a a is a n d office p a r ties . It is d ifficu lt , if n ot im p os s ib le, t o r econ cile t h is evid en ce wit h th e p a ym en t vou ch er s in r es p ect of Ma h a s e wh ich d es cr ib e t h e p a ym en t s to h im a s b ein g in r es p ect of BP (wh et h er t h os e let ter s s t ood for ‘b u s in es s p r ogr a m m e’ or ‘b u s in es s p r om otion ’). In r es p ect of t h is cou n t a ls o t h e s econ d a p p ella n t cla im ed t h a t h e h a d h a d d ocu m en t s in h is r ecor d s wh ich exp la in ed wh a t ea ch p a ym en t wa s for . Th es e d ocu m en ts , lik e t h e wor k s h eets I h a ve m en tion ed a b ove, h a d m ys ter iou s ly d is a p p ea r ed fr om t h e d ocu m en ts s eized fr om t h e fir s t a p p ella n t’s offices , s om et h in g wh ich wa s on ly m en tion ed b y h im in h is evid en ce. [3 4 ] I a m s a tis fied on t h is cou n t a ls o t h a t t h e a p p ella n ts s h ou ld h a ve b een con vict ed . It follows fr om wh a t I h a ve s a id t h a t t h e Cr own ’s cr os s -a p p ea l in r es p ect of t h e b r ib er y cou n t s m u s t b e u p h eld . SE NTE NCE [3 5 ] I tu r n n ow t o con s id er t h e a p p ea ls a ga in s t t h e s en t en ces im p os ed b r ou gh t b y t h e a p p ella n ts , wh o a llege t h a t t h e s en ten ces im p os ed b y t h e tr ia l cou r t a r e exces s ive, a n d b y t h e p r os ecu tion , wh ich con ten d s t h a t t h os e s en t en ces wer e d is tu r b in gly in a d equ a t e. In view of t h e fa ct t h a t I h a ve fou n d t h a t t h e a p p ella n t s s h ou ld a ls o h a ve b een con vict ed on t h e b r ib er y cou n ts it is n eces s a r y t o con s id er wh a t s en ten ces s h ou ld b e im p os ed on t h os e cou n ts . [3 6 ] Cou n s el for s econ d a p p ella n t s u b m it ted t h a t t h e cou r t a qu o er r ed in s en ten cin g t h e s econ d a p p ella n t in h is p er s on a l ca p a city t o t h e fin es im p os ed u p on h im b eca u s e, s o it wa s a r gu ed , t o d o s o is con tr a r y to s ection 3 3 8 (2 ) (c) of t h e Cr im in a l Pr oced u r e a n d E vid en ce Act 9 of 1 9 8 1 , a s a m en d ed . Section 3 3 8 (2 ) (c), a s fa r a s is m a ter ia l, p r ovid es : ‘(2 ) In a n y cr im in a l p r oceed in gs [a ga in s t a com p a n y] …. a d irector or s erva n t of a cor p or a te b od y s h a ll b e cited a s a rep res en ta tive of th a t cor p or a te b od y, a s th e offen d er a n d th ereu p on , th e p er s on s o cited m a y, a s s u ch a rep res en ta tive, b e d ea lt with a s if h e were th e p er s on a ccu s ed of h a vin g com m itted th e offen ce in qu es tion ; Pr ovid ed th a t – (c) h is h im in repres en ta tive t h e cor p or a t e b od y t h e p er s on r ep r es en t in g is If im p os e con vict ed , t h e cou r t con vict in g h im s h a ll n ot u p on a n y p u n is h m en t , wh et h er d ir ect or a s a lt er n a t ive, ot h er t h a n a fin e, even la w m a k es n o p r ovis ion for t h e im p os it ion of a fin e in r es p ect of t h e offen ce in qu es t ion a n d s u ch fin e s h a ll b e p a ya b le b y t h e b od y cor p or a t e a n d m a y b e [r ecover ed ] b y a t t a ch m en t a n d s a le of p r op er t y of t h e cor p or a t e b od y.’ (Th e it a lics a r e m in e.) t h e r eleva n t ca p a city if (Th e wor d I h a ve p la ced in s qu a r e b r a ck et s is t h e wor d u s ed in t h e cor r es p on d in g Sou t h Afr ica n s ection , on wh ich t h e Les ot h o s ection is m od elled . Th e wor d u s ed in t h e Les ot h o s ection is ‘r ecor d ed ’, wh ich is ob viou s ly a m is p r in t.) [3 7 ] It is clea r t h a t t h e s econ d a p p ella n t’s con t en tion in t h is r ega r d is n ot cor r ect . Th e s u b s ection d ea ls wit h t h e s en t en ce wh ich m a y b e im p os ed in effect on t h e com p a n y b y im p os in g it on t h e p er s on r ep r es en tin g it in h is r ep r es en ta tive ca p a city. It d oes n ot a p p ly t o a d ir ect or or s er va n t of t h e com p a n y, wh o is a ls o a n a ccu s ed , in h is p er s on a l ca p a city. [3 8 ] In view of t h e fa ct t h a t I h a ve com e t o t h e con clu s ion t h a t t h e Cr own ’s cr os s -a p p ea l a ga in s t t h e s en ten ces im p os ed on t h e s econ d a p p ella n t m u s t s u cceed I d o n ot p r op os e d ea lin g s ep a r a tely wit h t h e r es t of t h e a p p ella n ts ’ gr ou n d s of a p p ea l a ga in s t t h e s en t en ces im p os ed . [3 9 ] As wa s p oin t ed ou t in Ra n t h it h i a n d An ot h er v R; R v Ra n t h it h i a n d Ot h er s LAC (2 0 0 7 2 0 0 8 ) 2 4 5 a t p a r a 3 4 , s en t en ce b ein g a m a t ter wh ich p r e -em in en tly lies a t t h e d is cr etion of t h e tr ia l cou r t , a cou r t of a p p ea l will n ot or d in a r ily in t er fer e in t h e a b s en ce of a m is d ir ection r es u ltin g in a m is ca r r ia ge of ju s tice. Th is Cou r t is em p ower ed t o qu a s h t h e s en t en ce im p os ed a t t h e tr ia l a n d to s u b s tit u t e s u ch ot h er s en ten ce wa r r a n t ed in la w (wh et h er m or e or les s s ever e) a s it t h in k s ou gh t t o h a ve b een p a s s ed : s ee s 9 (4 ) of t h e Cou r t of Ap p ea l Act 1 0 of 1 9 7 8 , a s a m en d ed . [4 0 ] In d eter m in in g a p r op er s en t en ce it is n eces s a r y, a s t h is Cou r t h a s r ep ea ted ly h eld , t o h a ve r ega r d t o t h e tr ia d con s is tin g of t h e offen ce , t h e offen d er a n d t h e in ter es t s of s ociety: s ee Ra n t h it h i’s ca s e, s u pra , a t 2 5 5 D–F; Leb eta v R LAC (2 0 0 7 -2 0 0 8 ) 2 2 0 a t 2 3 6 I–J ; R v Th eja n e LAC (2 0 0 7 - 2 0 0 8 ) 4 2 0 a t 4 2 3 B-C. Th e offen ces of wh ich t h e a p p ella n ts h a ve b een con victed , fr a u d a n d b r ib er y, a r e ver y s er iou s . Th ey wer e com m itt ed for r ea s on s of p er s on a l ga in ; t h ey wer e p r em ed ita ted a n d th e a ir tick et fr a u d s a n d b r ib er y offen ces wer e com m it t ed over a n e xten d ed p er iod of tim e. Th e h a r m d on e t o Les ot h o b y offen ces of b r ib er y h a s b een exten s ively con s id er ed in n u m er ou s ju d gm en t s of t h is Cou r t , m a n y of wh ich a r e m en tion ed in Th e Cr own v Rea tile Th a b o Moch eb elele a n d An ot h er , C of A (CRI) 1 2 / 2 0 0 9 , a n a s yet u n r ep or ted ju d gm en t of t h is Cou r t d eliver ed on 1 0 Decem b er 2 0 0 9 a t p a r a 7 . S ee a ls o p a r a s 8 a n d 9 of t h e ju d gm en t in t h a t ca s e wh er e r efer en ce is m a d e to two S ou t h Afr ica n ca s es on t h e s er iou s n es s of cor r u p tion a n d s o-ca lled ‘wh ite colla r ’ cr im es (s u ch a s t h e fr a u d s of wh ich t h e a p p ella n ts h a ve b een con victed ). [4 1 ] Befor e I con s id er t h e cir cu m s t a n ces of t h e s econ d a p p ella n t I s h a ll d ea l wit h t h e p os ition of t h e fir s t a p p ella n t , wh er e t h er e a r e n o p er s on a l cir cu m s t a n ces t o b e con s id er ed a n d th e in t er es ts of s ociety a r e clea r . Th e fir s t a p p ella n t b ein g a com p a n y ca n on ly b e s en ten ced t o fin es . Cou n s el for t h e Cr own s u b m it ted t h a t t h e fin es im p os ed b y t h e tr ia l cou r t wer e d is t u r b in gly in a d equ a t e a n d in a p p r op r ia t e, b eca u s e, s o cou n s el a r gu ed , t h e fir s t a p p ella n t ‘is s t ill s u b s ta n tia lly b en efitin g fr om it s cr im es ’. Th is a r gu m en t over look s t h e fa ct t h a t t h e fir s t a p p ella n t wa s in effect a on e-m a n com p a n y r u n b y a n d for t h e s econ d a p p ella n t . At t h e en d of t h e 2 0 0 3 fin a n cia l yea r , i.e., on 3 1 Ma r ch 2 0 0 3 , it h a d cu r r en t a s s et s a ccor d in g to its b a la n ce s h eet of M5 6 0 7 2 0 . Th e Cr own d id n ot s u gges t t h a t t h is figu r e wa s n ot cor r ect a n d it wa s p r es u m a b ly ver ified b y t h e fir s t a p p ella n t’s a ccou n t a n t s . Th e b a n k b a la n ce m u s t h a ve b een les s t h a n t h a t figu r e. All t h e in d ica tion s t h er efor e a r e t h a t t h e fir s t a p p ella n t d id n ot r eta in t h e fr u its of it s cr im es . Th e p r ob a b ilities a r e over wh elm in g t h a t t h ey wer e t a k en b y t h e s econ d a p p ella n t , wh o m u s t b e m a d e t o d is gor ge t h em . In t h e cir cu m s t a n ces I d o n ot t h in k t h a t a b a s is exis ts t o d is tu r b t h e s en ten ce im p os ed on t h e fir s t a p p ella n t b y t h e tr ia l cou r t in r es p ect of t h e a ir tick et fr a u d cou n ts . [4 2 ] In r es p ect of t h e ta x fr a u d , wh ich in t h e even t fa iled in its ob ject b eca u s e t h e fir s t a p p ella n t d id n ot s u cceed in ob ta in in g a n a s s es s m en t b a s ed on t h e low a m ou n t of ta xa b le in com e d ecla r ed , I d o n ot t h in k it n eces s a r y t o in cr ea s e t h e fin e im p os ed b y t h e tr ia l cou r t . In t h is r ega r d I a m m in d fu l of t h e fa ct t h a t t h e LRA will, if s o m in d ed , b e a b le to im p os e a d d ition a l ta x on t h e fir s t a p p ella n t in ter m s of Divis ion II of Pa r t XI of Ch a p t er IV of t h e In com e Ta x Act 9 of 1 9 9 3 , a s a m en d ed . [4 3 ] Th e b r ib er y cou n t s wer e clea r ly clos ely lin k ed t o t h e fr a u d s . Th e officia ls wer e ob viou s ly b r ib ed to en a b le t h e m on eys over ch a r ged u n d er t h e in voices t o b e p a id over to t h e fir s t a p p ella n t . In t h e cir cu m s t a n ces t h e m os t s en s ib le wa y t o d ea l wit h t h es e cou n ts a s fa r a s t h e fir s t a p p ella n t is con cer n ed is t o im p os e a fin e a p p r oxim a tely equ a l to t h e a m ou n ts of t h e b r ib es p a id , i.e. M2 2 0 0 0 0 on t h e fou r b r ib er y cou n ts ta k en t oget h er . [4 4 ] I tu r n n ow t o d ea l wit h t h e s en ten ces wh ich s h ou ld b e im p os ed on t h e s econ d a p p ella n t . Th e cr im es h a ve b een con s id er ed a b ove. Accor d in g t o h is cou n s el, h is p er s on a l cir cu m s t a n ces wer e t h e followin g: (a ) h e wa s a fir s t offen d er ; (b ) t h e ca s e wa s p en d in g for s even yea r s a n d h e wa s t h u s s u b ject ed t o wh a t a m ou n ts t o t h e or d ea l of h a vin g ch a r ges of t h is k in d h a n gin g over h is h ea d for a len gt h y p er iod ; (c) h e is t h e b r ea d win n er of h is wife (wh o d oes n ot wor k ) a n d a m in or ch ild ; (d ) h e is s ick ly (h e h a s a h ea r t p r ob lem ) a n d b eca u s e of t h e s tr in gen t n a t u r e of h is b a il con d ition s h e wa s n ot a llowed to con s u lt d oct or s a s r equ ir ed . (I a s s u m e t h is r efer s to d oct or s ou ts id e Les ot h o); (e) h e wa s s u b ject t o s tr in gen t b a il con d ition s wh ich r equ ir ed h im t o r ep or t t o t h e a n t i- cor r u p tion offices on a d a ily b a s is for s even yea r s a n d a s a r es u lt h e cou ld n ot lea ve Les ot h o t o vis it h is eld er ly a n d a ilin g p a r en t s in In d ia . [4 5 ] Th e t h ir d fa ct or in t h e Zin n tr ia d is t h e in t er es t s of s ociety. I t h in k t h a t it is clea r t h a t it is n eces s a r y in t h e in ter es ts of t h is cou n tr y, a n d in d eed in t h e in t er es ts of con s is t en cy, t h a t t h e m es s a ge s en t ou t b y t h e p r eviou s ju d gm en ts to wh ich I h a ve r efer r ed (wh ich , a s I h a ve s a id , a r e collected in t h e Moch eb elele ca s e) s h ou ld n ot b e d ilu ted or ca n celled ou t b y t h e s en t en ces im p os ed on t h e s econ d a p p ella n t in t h is ca s e a s wou ld h a p p en if th e s en t en ces im p os ed b y t h e tr ia l cou r t wer e u p h eld . Th e ca s es in qu es tion h a ve m a d e it clea r t h a t offen ces of t h e s er iou s n es s of t h os e in r es p ect of wh ich t h e s econ d a p p ella n t h a s b een con vict ed ca ll for cu s tod ia l s en ten ces , cou p led wit h h ea vy fin es s o a s to en s u r e a s fa r a s p os s ib le t h a t t h e m on ey wh ich t h e s econ d a p p ella n t m a d e a s a r es u lt of t h e s e offen ces s h ou ld b e d is gor ged . We d o n ot k n ow h ow m u ch h e p er s on a lly ga in ed fr om t h e offen ces h e com m it ted . Bu t a s I h a ve s a id it is over wh elm in gly p r ob a b le t h a t t h e fr u its of t h e a ir tick et fr a u d cou n ts wer e ta k en ou t of t h e fir s t a p p ella n t b y t h e s econ d a p p ella n t . We d o n ot k n ow h ow m u ch t h e Cr own will b e a b le t o r ecover of t h e fin es im p os ed on t h e fir s t a p p ella n t or in d eed wh et h er a n y a m ou n t a t a ll will b e r ecover ed . Nor d o we k n ow wh a t fin e t h e s econ d a p p ella n t ca n a ffor d t o p a y. Th is is b eca u s e h e h a s r efr a in ed fr om p la cin g t h e n eces s a r y in for m a t ion b efor e t h e Cou r t . [4 6 ] Cou n s el for t h e s econ d a p p ella n t s u b m it ted th a t t h e cou r t a qu o’s fa ilu r e to con s id er t h e s econ d a p p ella n t ’s ca p a city to p a y t h e fin es im p os ed con s tit u ted a m is d ir ection . I d o n ot a gr ee. Th er e is p len t y of a u t h or ity for t h e p r op os ition t h a t a ju d icia l officer h a vin g d ecid ed t o im p os e a fin e ou gh t to en qu ir e a s to t h e m ea n s of t h e a ccu s ed . Bu t t h a t is t h e ca s e wh er e t h e p u r p os e of t h e fin e is t o k eep t h e a ccu s ed ou t of p r is on : cf R v Nh la p o 1 9 5 4 (4 ) S A 5 6 (T) a t 5 8 G-H. Bu t in m y op in ion t h a t d oes n ot a p p ly wh er e t h e p u r p os e of t h e fin e is n ot t o k eep t h e a ccu s ed ou t of p r is on b u t t o en cou r a ge h im t o d is gor ge s om e or a ll of h is ill-got ten ga in s . As I h a ve s a id I d o n ot a gr ee wit h t h e tr ia l cou r t’s a p p r oa ch a s fa r a s t h e s en t en ces im p os ed on t h e s econ d a p p ella n t a r e con cer n ed . I d o n ot t h in k t h a t t h is is a ca s e wh er e on e s h ou ld s tr ive to k eep h im ou t of p r is on . Bu t t h is is a ca s e wh er e on e s h ou ld give h im a n in cen tive to p a y b a ck t o t h e Cr own t h e p r oceed s of h is cr im in a l a ctivit y. [4 7 ] In m y view t h e a p p r op r ia t e s en ten ces t o im p os e on t h e s econ d a p p ella n t in r es p ect of t h e offen ces of wh ich h e h a s b een con vict ed a r e t h os e s et ou t in t h e or d er to b e m a d e. [4 8 ] Th e followin g or d er is m a d e: 1 . 2 . 3 . Th e a p p ea ls b r ou gh t b y t h e fir s t a n d s econ d a p p ella n ts a r e d is m is s ed . Th e cr os s -a p p ea l b r ou gh t b y t h e Cr own is a llowed s a ve a s r ega r d s t h e a p p ea l in r es p ect of fir s t t h e a p p ella n t . im p os ed on s en ten ces t h e Th e a cqu itt a ls of s econ d t h e a p p ella n ts on cou n ts 4 2 8 to 4 3 1 a r e s et a s id e a n d s u b s tit u ted in t h eir s tea d is t h e followin g or d er : fir s t a n d a n d fir s t ‘Th e a re con victed on cou n ts 4 2 8 to 4 3 1 a n d a re s en ten ced th ereon a s follows : a ccu s ed s econ d A B Th e fir s t a c c u s e d is s e n t e n c e d t o a fin e o f M2 2 0 0 0 0 o n c o u n t s 4 2 8 t o 4 3 1 t a k e n t o ge t h e r . Th e s e c o n d a c c u s e d is s e n t e n c e d t o e igh t y e a r s im p r is o n m e n t o n c o u n t s 4 2 8 t o 4 3 1 t a k e n t o ge t h e r , s e r v e d s u c h c o n c u r r e n t ly t h e im p r is o n m e n t im p o s e d o n c o u n t s 1 – 2 3 3 a n d 4 5 7 -5 0 3 .’ s e n t e n c e wit h be t o [4 9 ] Th e s en ten ces im p os ed b y t h e tr ia l cou r t on t h e s econ d a p p ella n t a r e s et a s id e a n d r ep la ced with t h e followin g: (A) On cou n ts 1 –2 3 3 a n d 4 5 7 -5 0 3 ta k en toget h er , 8 yea r s im p r is on m en t a n d in a d d ition a fin e of M3 m illion or fou r yea r s im p r is on m en t ; (B) On cou n t 4 5 7 A 3 yea r s im p r is on m en t t o b e s er ved con cu r r en tly wit h t h e s en ten ce of im p r is on m en t im p os ed on cou n t s 1 - 2 3 3 a n d 4 5 7 -5 0 3 . I a gr ee: I a gr ee: __________________ I. G. F AR LAM J US TICE OF APPE AL ___________________ J . W. S MALBE R GE R J US TICE OF APPE AL ____________________ D. G. S COTT J US TICE OF APPE AL For t h e a p p ella n ts For t h e r es p on d en t : : Dr . K. E . Mos it o KC a n d Ad v M. Ra fon ek e Ad v G. H. Pen zh or n