A 46-year-old man has been arrested by the Hawks for an alleged customs fraud scheme that may have cost the South African Revenue Service nearly R37 million in unpaid duties and taxes.
Image: AI-Generated
A 46-year-old man has been arrested by the Hawks in connection with an alleged customs fraud scheme that authorities say could have cost the South African Revenue Service (SARS) nearly R37 million in unpaid duties and taxes.
The Directorate for Priority Crime Investigation (Hawks) said members of the Durban Serious Commercial Crime Investigation unit arrested and charged Butholezwe Prosper Mhlanga on Monday in relation to an alleged fraudulent declaration involving a shipping container imported into the country.
According to the Hawks, the alleged offence dates back to 2021 when Mhlanga allegedly submitted documentation declaring that a container was carrying clear Sellotape and cups.
“It is alleged that in 2021, Mhlanga made a false declaration of goods to SARS declaring a container to contain clear Sellotape and cups,” the Hawks said.
Based on the declaration, SARS assessed the shipment for customs purposes. However, authorities said a subsequent inspection revealed that the container allegedly contained various brands of illicit cigarettes instead of the declared goods.
“Upon inspection however, the container was found to contain various brands of illicit cigarettes,” the Hawks said.
The Hawks said the alleged misrepresentation resulted in a substantial potential loss to the fiscus.
“This led to a potential loss of Customs Duty and Value Added Tax (VAT) valued at R36 965 454.05.”
A fraud case was opened at Durban Central Police Station before being transferred to the Hawks for further investigation.
Mhlanga made a brief appearance in the Durban Magistrate's Court on Monday, where he was granted bail of R20,000.
The matter has been postponed to September 4 as investigations continue.
IOL News