21 December 2007
The arrest yesterday of two individuals who are believed to be part of a
broader commercial fraud syndicate will strengthen the commitment by the South
African Revenue Service (SARS) to fight all forms of fraud and corruption â
inside and outside the organisation.
In September 2006, SARS appointed a special task team to work closely with
other law enforcement agencies, after various forms of tax refund fraud were
identified by SARS investigators. Over the past 18 months this task team has
identified 55 suspects for investigation and arrest.
Of these, 20 individuals â including one SARS employee â have been
successfully prosecuted to date. Another 16 individuals have since been
arrested and are awaiting trail. The prosecution of a further 17 is currently
under consideration by the National Prosecuting Authority (NPA).
In view of yesterday's arrests in Johannesburg by the South African Police
Service, and the uncovering of a suspected fraud syndicate, SARS assures
taxpayers that it will act decisively against any fraudulent activity. The
possibility of collusion between SARS employees and syndicate members is of
particular concern.
Should investigations find evidence of collusion SARS will act decisively
against such employees. SARS will also tighten its own internal processes and
security procedures to ensure the details of taxpayers are safeguarded against
any form of abuse.
For further media enquiries please contact;
Adrian Lackay
Cell: 083 388 2580
Thumida Maistry
082 210 8773
SARS Communications
Issued by: South African Revenue Service
21 December 2007
Source: South African Revenue Service (http://www.sars.gov.za)
