- A massive scheme to defraud the state of R100-million in VAT payouts has been uncovered
- Nine people were arrested and 38 induviduals and companies have been implicated including the Guptas Oakbay Investments
- Despite this the state has not made any effort to take action against the controversial Gupta family
A R100-million VAT scheme is being investigated and so far nine people from Centurion and Durban have been arrested for their alleged involvement in the scandal. The controversial Gupta family have also been implicated but the state has taken any action against them.
The scheme involved individuals and companies allegedly defrauding the state using false VAT claims. According to papers filed at the Pretoria High Court the false claims amount up to R100-million of which R30.5-million had been paid out.
The state alleges that Ridwaan Joosab was the mastermind behind the scheme and he managed and distributed the money which SARS paid out through 38 entities or individuals.
Oakbay Investments, the parent company of the Gupta empire in South Africa is one of the entities listed. However, Oakbay is not included on the charge sheet.
The Hawks have called the syndicate "The Enterprise". The nine people arrested have already been released on bail. The state has seized their nine homes the individuals own in Centurion through the Asset Forfeiture Unit.
Among those arrested were Ridwaan Joosab, one of his wives and his father Mahomed Iqbal Joosab, the owner of Shaz Trading.
Ridwaan's brother was also arrested, he is a Muslim theologian in Durban. The accused deny any involvement in the crimes.
The state alleges that they used the money that the SARS paid out to buy luxury cars through Shaz Trading, these included a Bentley Continental Flying Spur, five Mercedes-Benzes, a Ferrari F151, three Lamborghini Huracáns, two Porsches, a Rolls-Royce Phantom, four BMWs and various other vehicles.
Gold coins to the value of R2.6 were also allegedly purchased to cover up the source of the money.
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