10 July 2007
The National Prosecuting Authority's Asset Forfeiture Unit (AFU), Special
Tax Unit (STU), and the Directorate of Special Operations (DSO) together with
the South African Police Service (SAPS) and the South African Revenue Service
(SARS) have seized assets to the value of about R80 million belonging to one
businessman in KwaZulu-Natal.
The seizures are in terms of section 26 of the Prevention of Organised Crime
Act 121 of 1998. Assets seized include bank accounts frozen with cash amounting
to R53 million, 12 immovable properties (3 in Gauteng province and 9 in
KwaZulu-Natal) valued at R30 million as well as vehicles at an estimated value
of R1,8 million.
This multi-agency operation was part of pro-active investigations initiated
by the law-enforcement agencies. The suspect had concluded a service level
agreement with the Department Education in KwaZulu-Natal in July 2005 for
supply of stationery to various schools in the province. On the basis of the
agreement, the Department paid to the suspect and/or his company [Indiza
Infrastructure Solutions (Pty) Ltd] an amount in excess of R350 million where
the suspect included Value Added Tax (VAT) when he invoiced the Department. The
suspect failed to declare and remit to the South African Revenue Service (SARS)
VAT in excess of R43 million. The suspect was arrested and appeared in the
Durban Regional court where he was charged with fraud and theft. He was
released on warning and with conditions in terms of section 72 of the Criminal
Procedure Act 51 of 1977 as amended. The case got postponed to 27 June 2007 for
further investigations.
Following an appearance on 27 June 2007, the accused was allowed access to
his passport in order to travel abroad. The case has now been postponed to 26
July 2007 on which day it is expected that a trial date may be fixed.
The investigation was initiated in June 2006 and the seizures punctuate but
only one leg of the ongoing investigations. This operation bears testimony to
the fact that law-enforcement agencies are operating at a level of heightened
vigilance in so far as monitoring criminals and initiating investigations is
concerned.
For enquiries, please contact:
Tlali Tlali
NPA Deputy Spokesperson
Cell: 082 333 3880
E-mail: ttlali@npa.gov.za
Issued by: National Prosecuting Authority
10 July 2007
Source: National Prosecuting Authority (http://www.npa.gov.za/)
