IN GOOD FAITH
CARMEL RICKARD: Don’t play with prison
People find to their cost that, when a court brings up the possibility of imposing a jail sentence, it is usually not an idle threat
Let the fate of convicted businessmen Andrew Stow and Jacobus Meyer serve as a cautionary tale — when the courts say: "Pay back the money or go to jail," they really mean it. Stow was convicted of contravening Vat laws by not paying the SA Revenue Service (Sars) R400,000 in Vat that he had collected between 2004 and 2010.Meyer, charged with conducting the business of a bank without being registered, had invited the public to invest with his CC on the basis that their money would fund his microlending business and he would pay interest to investors. In all, "investors" paid him more than R28m, and by the time of conviction he still owed investors more than R5.2m. Both men, found guilty, escaped jail but only on tough repayment conditions. Stow (51), was sentenced to five years, suspended on conditions that included payment of the outstanding Vat, plus interest, at R10,537.43 monthly, starting from August 2011. Meyer was fined R100,000 or 400 days in prison. He was further sentenced t...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.