2 held for illegal gold mining syndicate in Kempton Park

2015-05-30 11:42

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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

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