Will the real rogue unit please stand up?

Finance Minister Pravin Gordhan must be wondering whether the plan to combat the illegal tobacco trade in South Africa, was worth it.

Because that is apparently where the nightmare he finds himself in now began.

While Gordhan will not be reporting to the Hawks this afternoon, it appears as if former Sars deputy commissioner Ivan Pillay, together with former group executives Pete Richter and Johan van Loggerenberg, will be knocking on Brigadier Nyameka Xaba’s door today, where they will be informed of their rights under the constitution and the charges against them.

Van Loggerenberg yesterday urged the public not to overreact regarding the possible charges against the former Sars officials.

He has also made it abundantly clear that the saga has its origins in the Sars investigation against the illegal tobacco trade.

“As early as July 31, 2014, Sars was on record that the initial attacks on Sars, me and investigative units that I managed, were driven by persons associated with the tobacco industry,” Van Loggerenberg told The Citizen.

“I have continuously offered my cooperation to the authorities as early as 2014. I have nothing to hide and deny any wrongdoing. As stated before, I have no doubt if the Hawks conduct their investigations without fear or favour, the truth shall ultimately triumph.”

Van Loggerenberg’s claim the tobacco industry was behind the destabilisation of Sars is startling.

PENDING COURT ACTION

If the Hawks need any more information, they need to look no further than pending court action between independent cigarette manufacturer Carnilinx and British American Tobacco (BAT), Forensic Security Services (FSS) and eight other respondents.

Former police officer and FSS investigator Daniel van der Westhuizen stated on behalf of Carnilinx in its founding affidavit that BAT agents were paid up to R5 000 for disturbing Carnilinx operations. “BATSA paid in excess of R150 million to the spies, through FSS,” said Van der Westhuizen, referring to spies recruited by FSS.

Van der Westhuizen alleges that the “South African Police, Department of Priority Crimes Investigation, Crime Intelligence Gathering, Asset Forfeiture Unit, Sars, Customs and Traffic Control Policing Unit” were all stakeholders in a project aimed at disrupting Carnilinx operations.

Van der Westuizen said if BATSA was investigated properly, authorities “may well recover tens of billions of rands”.

WALTER’S ROLE

According to a letter from former Fair Trade Independent Tobacco Association (Fita) chairperson Belinda Walter’s attorney in May 2014, it was between December 2012 and January 2013 that Walter was introduced to BAT, the Tobacco Institute of South Africa (Tisa) and their private security firm, FSS.

“As a direct result of Walter’s relationship with representatives of the State Security Agency (SSA)”, Walter then entered into an agreement with BAT.

“Walter would provide BAT with information concerning illicit and/or criminal activity of independent cigarette manufacturers, who were clients of Walter, and/or members of the Fita (of which Ms Walter was the chairperson from its formation until November 2013),” the letter to Ewan Duncan of BAT stated.

Walter was to be paid £3 000 per month by BAT “to share such information” with BAT which would “be used by BAT in conjunction with SSA and other SA law enforcement agencies to combat criminality in the tobacco and cigarette industries”.

But this agreement seems to have been broken.

In a subsequent letter, Walter threatens to sue BAT for nonpayment and was also going to sue the SSA for misrepresentation, “as BAT, SSA, and the other South African law enforcement agencies were not sharing the information for the purposes alleged ...”

Shortly afterwards, Walter was allegedly approached by members of Sars’ Tobacco Task Team and offered immunity in exchange for dropping the civil action against BAT and SSA.

‘ROGUE UNIT’

In June 2014, rumours of a “rogue unit” within Sars surfaced. The next month Walter’s alleged SSA handler told her “he represented interests of people who sought to replace the leadership of Sars and minister of finance”. The claim was circulated to various people in Sars through an e-mail by Walter on July 20, 2014.

‘GROWING PROBLEM’

In response to these allegations, BAT acknowledged that it was involved in litigation with other cigarette manufacturers.

“The illicit tobacco trade in South Africa, which accounts for nearly a quarter of the overall market, is a growing problem. For years, we have endeavoured to assist the law enforcement agencies in their efforts to combat this illicit trade,” BAT said in a statement to The Citizen.

“We are currently involved in litigation with certain manufacturers, who have made claims that some of our activities went beyond our legitimate interest in combating the illicit trade..”

Numerous attempts to engage Walter on the allegations proved fruitless.

As early as July 31 2014, Sars was on record that the initial attacks on Sars, me and investigative units that I managed, were driven by persons associated with the tobacco industry. Johan van Loggerenberg Former Sars group executive