National Prosecuting Authority

10 April 2011

http://www.moneywebtax.co.za/moneywebtax/view/moneywebtax/en/page259?oid=57727&sn=Detail&pid=1

SARS was defrauded of approximately R77 million in tax refunds by a syndicate comprising of Pakistani nationals and SA citizens.

In the preceding two months the Asset Forfeiture Unit (AFU) of the National Prosecuting Authority (NPA), obtained fourteen orders in the South Gauteng High Court, in terms of the provisions of the Prevention of Organised Crime Act, authorizing the seizure of property relating to fraud committed against the South African Revenue Service (SARS) between September 2008 and March 2009.

SARS was defrauded of approximately R77 million in tax refunds by a syndicate comprising of Pakistani nationals and South African citizens. The kingpins of the syndicate are identified as Aliraza Syed Naqvi, a Pakistani national and Jabulani Freddy Sewela, a South African citizen. The syndicate managed to steal approximately R51 million from SARS. The stolen funds were laundered through a multitude of bank accounts operated and controlled by the syndicate.

Investigations led to the arrest and prosecution of a number of individuals on charges of fraud, money laundering and corruption. Three of the nine accused have pleaded guilty and have been sentenced. Of the aforementioned  three sentenced, Samuel Thabo Gouwe was sentenced to ten years imprisonment conditionally suspended for 5 years for two counts of theft and accepting a benefit. Zaheer Seedat was sentenced to eight years imprisonment and Audeya Makhubu received a five years wholly suspended sentence.

 The remaining five accused will be appearing in the Randburg Magistrates Court on 1 June 2011.  Two are in custody while three are out on bail and the one died due to natural causes in custody while awaiting trial.

The syndicate's intricate money laundering web was unravelled by SARS and AFU. Notwithstanding attempts to conceal or disguise the proceeds of the crime, assets totalling in excess of R20 million were tracked and seized. These include various houses in affluent suburbs, household contents and numerous luxury and other vehicles. A house in Sandton that was deviously concealed in a trust by a deceased syndicate member was also seized. 

An amount of R500 000 paid by Sewela from the proceeds of the crime into an attorney's trust account was surrendered to the South African Police Service (SAPS) by the attorney. This money and all monies held in credit in the numerous bank accounts are all subject to seizure. Investigations to identify further assets continue.

The successful seizures are the result of excellent co-operation between SARS, the Hawks and the NPA. This is a clear unequivocal warning to all persons engaged in or who contemplate engaging in criminal activities, that law enforcement in partnership will apprehend, prosecute and remove the profit from their crime.