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Durban Businessman Charged with Fraud and Theft In Multimillion-Rand SARS Scam

Published November 15, 2024
3 months ago

In a significant crackdown on commercial crime, a 40-year-old Durban clearing agent has been charged with a series of fraud and theft offenses that have left the South African Revenue Services (SARS) and South African Breweries (SAB) out of pocket to the tune of over R14 million.





The suspect, whose identity is yet to be disclosed, was apprehended by the Hawks members from the Durban Serious Commercial Crime Investigation unit. He is accused of fourteen counts of fraud and fifteen counts of theft, a hefty charge sheet that emphasizes the severity of the alleged offenses.


The fraudulent activity surfaced from an incident that dates back to September 18, 2018. As the sole director of the clearing agent, the businessman was entrusted by SAB to handle the clearance of their imported goods, a service that involves the facilitation of transactions between importers and SARS to ensure that correct duties and levies are applied and paid.


According to the charges, the suspect exploited this position by creating a false bill of entry, manipulating the documents provided by SAB in his favor. He reportedly altered the descriptions of goods, likely with the intent to decrease the value and, therefore, the tax liability owed to SARS. Subsequently, SARS was presented with an under-declared value, leading to a substantial loss of R14,711,077.60 in tax revenues.


While successfully diminishes the tax, the accused didn't stop there. He is alleged to have charged the breweries the full, undiminished amount as if the original tax rates applied, thereby defrauding SAB of considerable sums.


This case is not only about financial loss; it's also a matter of public trust in systems that are essential for the country's economic well-being. Such trust is critical—and its breach should be met with the full force of the law. Hence, the suspect is set to face his charges in a setting befitting the gravity of his alleged actions, the Durban Specialised Commercial Crime Court, on November 28, 2024.


Major General (Dr) Lesetja Senona, head of the KwaZulu-Natal Directorate for Priority Crime Investigation, has extended his praises to the members of the Hawks for their tireless work leading to the charges. Given the complexity of commercial crimes, their success in this case is a testament to their expertise and dedication to unraveling deceitful schemes that rob the public coffers and compromise corporate integrity.


As the country reels from financial crimes that hinder development and growth, this case will be closely watched by business communities and the public alike. Consequences for commercial crime are tightening, and as this case moves to court, many hope it will set a precedent for accountability and justice in South Africa's ongoing struggle against corruption and fraud.


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