Perly ring busted
Alleged masterminds among 11 arrested in PE swoop
THE alleged masterminds of one of the biggest suspected perlemoen smuggling syndicates in South Africa with international links were arrested with nine others during a joint operation in Port Elizabeth yesterday. The two men – businessman and former nightclub owner Morne Blignaut and Julian Brown, who tried through the courts to put an end to a SARS lifestyle audit – were netted in the coordinated pre-dawn raids on seven houses. The arrests follow a two-year probe into perlemoen smuggling between South Africa and China. Several units, including the asset forfeiture unit, the police’s special task force, crime intelligence, the national intervention unit and cyber crime investigations, were involved in the raids. Police top brass revealed yesterday that a staggering R500-million had been made by the syndicate, which was based in Port Elizabeth but extended to other parts of the country.
It is believed the money was made during a period that extends over the duration of the probe and possibly further back, although police would not elaborate.
This will be one of a few cases in the province where alleged syndicate members are charged with racketeering for funds accumulated from perlemoen poaching and smuggling.
The probe was triggered in 2014 when three men were caught with six tons of perlemoen, worth R10-million, on a farm behind the Coega Hotel near Grassridge.
The Hawks, who spearheaded yesterday’s raids, hailed the arrests as a breakthrough in the fight against environmental crime and the pillaging of marine resources.
Seven months ago, the SA Revenue Service (SARS) revealed that it had launched an investigation of suspected criminal kingpins, and their businesses, operating in Port Elizabeth.
The investigation – which includes lifestyle audits – pertains to alleged tax evasion funded by ill-gotten gains.
The businesses pose as front companies to launder money.
The SARS investigation, which is separate from yesterday’s arrests, remains ongoing.
Hawks spokeswoman Captain Anelisa Feni said the seven houses had been raided simultaneously at about 4.30am.
“The raids ... saw several arrests linked to a syndicate made,” she said.
Some of the houses were in Theescombe, South End, Linton Grange and North End.
Five people had been arrested by 6am, and a further six by 9am.
At Blignaut’s home in Kragga Kamma Road, Theescombe, police surrounded the property, raided the main house and two outside flatlets, and arrested him.
Clearly an avid rugby fan, Blignaut’s home was filled with rugby memorabilia, including signed jerseys and pictures.
The front perimeter gate was broken off during the operation.
Inside the house and flatlets were large plasma screen TV sets mounted on the wall, with two pool tables inside the main house.
A wall unit filled with model cars towered over a bar in one of the entertainment rooms.
A variety of items were confiscated during the operation, including cameras, documents and jewellery.
Brown, meanwhile, forms part of the SARS investigation and was issued with a “lifestyle questionnaire” last year. SARS eventually took him to court two months ago for failure to comply.
Brown was also given notice that SARS intended to investigate his tax affairs based on protected third party information that certain income had allegedly not been disclosed and expenses had been incorrectly claimed for tax purposes.
Deputy national Hawks head Lieutenant-General Yolisa Matakata – who arrived in Port Elizabeth yesterday – said the arrests would make a dent in the syndicate’s operations and the smuggling of perlemoen out of the country. “This arrest has a
This arrest has a massive impact on the syndicate’s [operation]
massive impact on the syndicate’s [operation],” Matakata said.
“Over the period of this investigation, we believe the syndicate has made approximately R500-million.
“We are still busy with further investigations and more arrests are imminent.”
Matakata confirmed the syndicate had international ties.
“Two Chinese nationals were among those arrested,” she said.
“Obviously, when we say international links, the abalone [perlemoen] is going out of the country and this is connected to the two Chinese national arrests.”
The operation was spearheaded by Hawks provincial commander Brigadier Gopz Govender, who said the arrests should serve as a warning to others.
“[Perlemoen] poaching has a major impact on the environment and entire coastline.
“They [poachers] rape the coastline, so this is one step forward in stopping them.”
The 11 suspects, aged between 18 and 57, are expected to appear in the Port Elizabeth Magistrate’s Court today on racketeering and other charges linked to the smuggling of perlemoen.
At the time of the 2014 bust, the Department of Agriculture, Forestry and Fisheries confirmed that most of the perlemoen confiscated on the farm had been smuggled into the Bay from the Western Cape.
Two Chinese nationals, Huang Zhanyang, 30, and Pow Kekun, 51, who were arrested on the farm during the raid, have since pleaded guilty.
Govender declined to talk about what assets were going to be seized from the syndicate.
Specialist environmental crime prosecutor advocate Martin le Roux is expected to prosecute the cases.