Two more suspects have been arrested in Siyabuswa and the North West as law enforcement agencies expand a crackdown on a syndicate accused of defrauding SARS of over R500 000.

The arrests were executed by the Hawks’ Serious Commercial Crime Investigation team in Middelburg, working alongside Nelspruit officers, SARS, North West police, and the NPA.

One of the two suspects, alleged to serve as the sole director of Clemco Consult Biz Solution, was brought before the Siyabuswa Magistrate’s Court and added to the charge sheet alongside their co-accused.

Investigators uncover R3.4m potential loss

According to Hawks spokesperson Lieutenant Colonel Magonseni Nkosi, investigators allege that between 2018 and 2020, members of the syndicate worked together to submit false VAT returns and claim unlawful refunds.

Nkosi said the scheme resulted in an actual loss of R523 724.79 to SARS, with investigators identifying potential further losses of over R3.4m.

“The stolen funds were allegedly paid into business accounts before being moved into personal accounts. None of the money has been recovered so far. The investigation has led to the arrest of 10 individuals and six business entities. The accused face multiple charges, including fraud, theft, and contraventions of both the Tax Administration Act and the Prevention of Organised Crime Act,” Nkosi said.

Middelburg Hawks officers remain actively involved in tracking down remaining suspects linked to the scheme.

Hawks warn outstanding suspects

Mpumalanga Hawks provincial head Major General Nico Gerber welcomed the breakthrough and warned officers are closing in on remaining suspects.

“Operation Jan Vas demonstrates the Hawks’ resolve to follow the money and dismantle organised criminal networks that deliberately abuse the tax system. Fraud against SARS is not a victimless crime; it deprives the state of revenue needed to deliver essential services. Our investigation remains active, and those still outstanding should know that the net is closing,” said Gerber.

The Hawks confirmed Operation Jan Vas is far from over as local teams continue to trace further suspects and follow the money trail.