Suspected illicit gold syndicate duo nabbed at luxury estate
The value of the investigation aggregates to R400 million
TWO suspects linked to an illicit gold industry syndicate were arrested by the Directorate For Priority Crime Investigation (Hawks) at a luxury estate in Kempton Park on Friday morning.
This followed a joint intensive investigation with the South African Revenue Service’s (SARS) Enforcement Division.
According to Hawks spokesman, Brig Hangwani Mulaudzi, the duo, aged 43 and 34, will appear in Boksburg Magistrate’s Court on Monday.
He would not reveal the name of the estate.
“Since August 2013, SARS has been investigating about 26 companies/individuals that were suspected of using fraudulent tax schemes to legitimise illegally mined or smuggled gold. In February 2015 a case was registered with the South African Police Service.
“The two people arrested are suspected of being part of an illicit gold industry syndicate. They are being charged with crimes such as racketeering, money laundering, forgery as well as various tax offences,” explained Mulaudzi.
Mulaudzi said the group was alleged to have fabricated over 16 000 fraudulent invoices, worth about R437 million, to reflect purchases of second hand gold jewellery. These fictitious purchases were used in claiming a fraudulent 14% national VAT input from 2010 to 2012, as well as understating their sales during the same period.
SARS had suffered an actual prejudice in excess of R50 million due to this scheme. The value of the investigation aggregates R400 Million.
The Hawks are in pursuit of a third suspect whose arrest is imminent.
