Major breakthrough as coal syndicate operating in 5 provinces dismantled
The South African Revenue Service (SARS) made a major breakthrough in dismantling a coal syndicate operating in five provinces.
Multiple arrests, which included former Eskom employees, were made on Thursday morning.
In a statement, SARS said the bust prevented what could have been financial losses of more than R500 million for the utility in the current financial year.
Members of the suspected syndicate were operating in Gauteng, Mpumalanga, KwaZulu-Natal, the Free State and Limpopo.
"The suspects targeted today include former Eskom employees who facilitated procurement fraud, as well as other individuals involved in the diversion of high-grade coal,” SARS said.
Authorities are also looking into possible gross tax contraventions.
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"This includes the non-registration for Income Tax, VAT and/or PAYE, failure to submit tax returns, under-declaration of income, claiming undue VAT refunds and making false submissions."
The alleged syndicate is believed to consist of local and foreign nationals with a modus operandi of diverting trucks carrying high-grade coal destined for power stations.
The coal on the trucks would subsequently be replaced with low-grade coal or sub-standard products.
SARS commissioner Edward Kieswetter commended the country’s law enforcement agencies for what he believes to be a massive breakthrough in the battle against coal syndicates.
"It is because of such naked greed that the country has experienced unprecedented load shedding, which harms business, undermines foreign direct investment, and leads to job losses - all of which negatively affect revenue collection,” Kieswetter said.
“All law enforcement agencies must continue their aggressive fight against criminality, each according to its mandate. For its part, SARS will continue to pursue taxpayers involved in intentional and wilful non-compliance - without fear, favour or prejudice."
