R90m VAT scam – 9 held

NINE members of a syndicate suspected of operating a large-scale value-added tax (VAT) fraud scam‚ with a potential loss to the fiscus of almost R90-million‚ have been arrested after the Hawks raided premises in two provinces.

The eight men and a woman aged between 35 and 70 were arrested at their homes in upmarket residential areas in Gauteng and KwaZulu-Natal.

A search and seizure operation was conducted simultaneously at 12 premises at dawn on Wednesday, the Hawks said yesterday.

These included a number of business premises.

The operation was planned with the Hawks’ cyber crime and commercial crime units and South African Police Service (SAPS) tactical response units‚ following an investigation by SARS criminal investigators.

Brigadier Hangwani Mulaudzi, of the Hawks, said the SARS investigation revealed that the syndicate allegedly claimed R99-million in fraudulent refunds through 15 registered but fictitious VAT vendors.

SARS had paid out about R30.6-million before the scam was uncovered.

“An AK47, a pistol‚ about ß2 300 and R250 000 in cash and several gold bars were impounded.

“Vehicles parked in front of the posh homes in a Wierda Park‚ Centurion, estate included a Maserati and a Mercedes-Benz Gelandewagen‚” [a luxury SUV also known as the G-wagen]‚ Mulaudzi said.

Those arrested were expected to appear in the commercial crime courts in Durban and Pretoria yesterday. – TimesLIVE