Tobacco entrepreneur Adriano Mazzotti, who has openly admitted to serious criminal activities, including tobacco smuggling, tax evasion, and illegal surveillance, is yet to face any criminal charges.
Image: Courtney Africa/Independent Newspapers
Despite admitting to tobacco smuggling, tax evasion, illegal surveillance, and attempts to corrupt SARS officials, Adriano Mazzotti has yet to face criminal charges. Tax Justice SA has asked the National Prosecuting Authority (NPA) to explain why.
The Madlanga Commission learned on Friday that Mazzotti's admissions were included in a confidential 2014 settlement with the South African Revenue Service (SARS).
In an affidavit to the Commission, Mazzotti admitted to unlawfully importing tobacco, manufacturing cigarettes “off the books,” conducting illegal surveillance of SARS officials, and paying R800,000 in cash to a legal adviser believed to have influence over SARS officials.
Tax Justice SA founder Yusuf Abramjee stated that South Africans deserve answers.
“The NPA must address one simple but very crucial question,” he said. “If someone admits to serious crimes involving tax fraud, illicit tobacco trading, and attempts to corrupt public officials, why was there apparently no criminal prosecution?
“It is common practice to settle a tax debt. But can South Africans now settle their way out of crime?
“A tax settlement is meant to recover money owed to the fiscus. It should never become a substitute for criminal accountability. If admissions of this scale do not lead to prosecution, public confidence in the justice system is badly damaged, and organised crime is allowed to run amok.”
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The Commission also heard evidence of a close relationship between suspended Crime Intelligence Major-General Feroz Khan, who was supposed to testify last week but survived an apparent assassination attempt, and Carnilinx director Mohamed Sayed.
WhatsApp exchanges presented to the Commission appear to discuss illicit tobacco investigations and indicate an unusually close relationship between the two men.
Abramjee stated that the latest evidence reinforces long-standing concerns that organised crime may have received protection from within elements of the criminal justice system.
Corruption Watch has questioned why no criminal prosecutions have followed major investigations by SARS, the Financial Intelligence Centre, the South African Reserve Bank, and other state agencies into an alleged tobacco and gold-smuggling network centred on Gold Leaf Tobacco Corporation and businessman Simon Rudland.
According to Corruption Watch, investigators linked the alleged network to about R8.2 billion in unpaid tax and referred more than 100 individuals and entities to the Hawks and the NPA for investigation.
However, no criminal charges have been brought against Rudland or others in connection with these allegations of illicit tobacco trading, gold smuggling, money laundering, tax fraud, and the movement of billions of rand offshore.
“South Africans are seeing a worrying pattern,” said Abramjee.
“On one hand we have Mr Mazzotti’s admissions of serious criminal conduct that apparently resulted in no prosecution. On the other hand, we have years of investigations, allegations involving R8.2 billion in unpaid tax and referrals by multiple state agencies, yet still no criminal charges.
“The NPA owes the public an explanation. If there is not enough evidence to prosecute, it should say so. If there is, South Africans deserve to know why these cases have not reached a courtroom.
“Nobody should be above the law. Justice cannot depend on wealth, influence, or political connections.”
The Star has approached the NPA for their comments.