2 held for illegal gold mining syndicate in Kempton Park

2015-05-30 11:42


Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Johannesburg - The Hawks on Saturday said they were continuing their search for a third suspect wanted in connection to a multi-million rand illegal gold mining syndicate.

Two other people were arrested following a raid at an upmarket estate in Kempton Park, Ekurhuleni, on Friday, said Brigadier Hangwani Mulaudzi.

"They are being charged with crimes such as racketeering, money laundering, forgery as well as various tax offences," Mulaudzi said.

"Their group is alleged to have fabricated over 16 000 fraudulent invoices worth about R437m to reflect purchases of second hand gold jewellery . These fictitious purchases were used in claiming a fraudulent 14% notional VAT input over the period of 2010 to 2012, as well as understating their sales during the same period."

Mulaudzi said the SA Revenue Service had suffered an actual prejudice in excess of R50m due to this scheme. The value of the investigation aggregates R400m.

The pair was expected to appear in the Boksburg Magistrate's Court on Monday.

Meanwhile, the Portfolio Committee on Mineral Resources welcomed the arrests.
“We believe that a successful prosecution of the suspects would reaffirm our long-held view that illegal mining is a deep rooted activity, in which rich people with resources and connections in high places might be involved,” said committee chairperson Sahlulele Luzipo.

“Although we hope it is not true, but our view is that to a larger extend illegal miners are probably conniving with those who are in a formal trade.

As such, we hope that this investigation could unearth more syndicates and bring perpetrators to book, especially the kingpins who stand to benefit out of the proceeds of illicit activities,” he said.

Read more on:    johannesburg  |  crime

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
Comments have been closed for this article.

Inside News24

Financial advisors – Do you need one and should you get one?

The good, the bad, and everything else you need to know when considering hiring a financial advisor.


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.