During the past 21 months SARS in conjunction with the SAPS Commercial Crime Unit (Hawks) conducted and investigation into acts of serious Corruption, Fraud and Money Laundering committed by an organised crime syndicate. The syndicate will be referred to as the "Naqvi Syndicate" The syndicate consist of Pakistani as well as South African citizens.
The case emanated from two international companies whose tax refunds were fraudulently diverted after duplicate companies were registered at CIPRO. The companies are SBC International Management Services and Sun Microsystems. Two other companies' refunds were also fraudulently diverted but no duplicate companies were created. They are Boston Scientific (South Africa) and All Pay Western Cape.
The four companies' refunds totalled R78 million rand. SARS was able to recover R 26 million but an actual loss of R 51 Million was suffered. State agencies are now in the process of recovering the outstanding R51 million. Thus far approximately R 507 000 of this total had been recovered.
The following syndicate members have been arrested
1. Aliraza Syed Naqvi: Syndicate leader
He was arrested during June 2009, applied for bail in the Regional court which was refused. He appealed the judgement to the South Gauteng High Court who dismissed the appeal. He is in custody.
2. Jabulani Freddy Sewela
He was arrested during October 2009, applied for bail in the Regional court which was refused. He appealed the judgement to the South Gauteng High Court who dismissed the appeal. He then appealed the decision to the Supreme Court of Appeal who heard the appeal on 24 November 2010 and reserved judgment. The decision will in all probability be released in Jan 2011.
3. Carol Ann Dhludhlu
She was arrested during October 2009, applied for bail in the Regional court which was refused. She appealed the judgement to the South Gauteng High Court who upheld the appeal and release her on R20,000.00 bail.
4. Mazhar Raza Syed
He was arrested during October 2009, applied for bail in the Regional court which was refused. He appealed the judgement to the South Gauteng High Court who dismissed the appeal. He is in custody.
5. Samuel Gouwe - GijimaAst employee
Pleaded guilty to Corruption and Theft and will be sentenced shortly.
6. Audelia Makhubu - SARS employee
She was arrested during November 2009, applied for bail in the Regional Court which was refused. She pleaded guilty at a later stage and was released on bail. A warrant for her arrest had been issued since she did not appear in court on the 27 November 2010. She will be arrested shortly.
7. Freddy Gabaza
He was arrested during March 2010, applied for bail in the Regional Court which was refused. He brought a second application on new facts which were also refused. He died in custody as a result of natural causes.
8. Zaheer Seedat @ Imran Abbas
He was arrested and pleaded guilty on 2 September 2010 to two counts of Fraud and a contravention on the Identification Act. He was sentenced on 30 November 2010 to 8 years imprisonment.
9. Pabalo Leticia Mofokeng
She was arrested and was released on bail of R20 000.
The case has been set for trial in the Randburg Regional Court from 7 - 11 March 2011.
Photo: Imran Abbas / Zaheer Seedat:
Statement issued by Adrian Lackay, Spokesperson for the South African Revenue Service, December 1 2010
Click here to sign up to receive our free daily headline email newsletter
