JZ’s nephew, son in Sars probe link

2014-02-23 14:00

President Jacob Zuma’s son, Edward, and his nephew, Khulubuse, have been linked to alleged organised crime figures now under investigation by a special SA Revenue Service (Sars) unit.

The two were directors of companies under investigation for tax evasion and possibly fraud and money laundering – all believed to have been committed while they were appointed to senior positions. Although they are not suspected to have known about the alleged wrongdoing, they are believed to have been appointed as “political insurance” should the companies be investigated.

But while the probes are under way, a war has broken out between Sars and the suspected tax dodgers, with claims and counter-claims of spying, illegal phone tapping, business robbery, trespassing and harassment.

City Press has learnt that the company that Edward Zuma served as director of has laid criminal charges against investigators from Sars’ elite Tax and Customs Enforcement Investigations (TCEI) unit.

City Press understands that these complaints are being personally managed by the country’s most senior detective, Lieutenant General Vineshkumar Moonoo.

The TCEI was established to tackle organised crime and has handled cases involving EFF leader Julius Malema, Ponzi scheme mastermind Barry Tannenbaum, and Czech fugitive Radovan Krejcir.

Khulubuse Zuma is a director of Aurora Empowerment Systems, the mining company accused of stripping two mines and destroying 5?300 jobs.

He served as director with Nelson Mandela’s grandson, Zondwa, and President Zuma’s lawyer Michael Hulley. Aurora has already been liquidated.

Sars has launched an investigation into the gold income of the shareholders and allegations of tax evasion and money laundering. The Hawks are also investigating the case.

Through a spokesperson, Khulubuse Zuma said he had no knowledge of the investigation “but stands ready to fully cooperate with Sars investigators”.

Edward Zuma, the president’s eldest son, is linked to the Sars investigation into controversial cigarette manufacturer Yusuf Kajee, CEO of Amalgamated Tobacco Manufacturing (ATM). The TCEI unit is probing Kajee and ATM for tax evasion, fraud and smuggling in a case involving hundreds of millions of rand.

ATM was previously known as Delta Tobacco, which has already been placed under liquidation. Edward Zuma was a director of ATM from around 2008 until November 2011, which covers a substantial period of the Sars investigation.

Sars raided ATM’s Pietermaritzburg factory last August, on suspicion that the premises were used to conduct human trafficking and store contraband tobacco.

Edward has been mired in financial controversy for years. He defaulted on repayments of two loans worth about R6?million from state bank Ithala.

Kajee and Edward Zuma remain business partners and the two are directors of Fastjet Holdings, which plans to offer low-cost flights in South Africa.

Neither Edward Zuma nor Kajee responded to requests for comment.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.

Inside News24


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.