(AFU)
28 February 2007
Pretoria: In one of the biggest asset forfeiture orders ever obtained in
South Africa, the Asset Forfeiture Unit (AFU) of the National Prosecuting
Authority (NPA) has obtained a High Court order to seize assets worth R370
million from Mr Hendrik Delport and 12 other co-accused.
The order is being executed today and the AFU estimates that assets worth
R100 million or more will be found.
The massive seizure of assets is the result of a huge investigation by the
South African Revenue Service (SARS) and protracted criminal battle in which
SARS is the complainant. Therein, Mr Delport and 12 other individuals and
associated business entities face more than 7 000 charges relating to cigarette
smuggling, fraud and racketeering.
Mr Delport is the owner of an aviation company, Phoebus Apollo Aviation,
which undertakes cargo flights to neighbouring states from South Africa and
also owns, among other business interests, a flight school and cigarette
factory, Exclusive Tobacco products.
During 2000 SARS conducted an audit on the various business entities
associated with Mr Delport and his co-accused to verify the exportation
documents for cigarettes to various countries. The investigation also required
co-operation from law enforcement agencies from Angola, Zimbabwe and
Malawi.
SARS' contention in the subsequent criminal trial against Mr Delport and his
co-accused is that documents submitted by the entities were false in order to
claim VAT and excise duties from SARS. SARS further contends that fraudulent
claims for VAT and excise duties amounts to a potential loss to the fiscus of
approximately R264 million.
The criminal trial against Mr Delport and others has already entered its
second year in which 26 witnesses have testified to date in the Pretoria
regional court. Among the accused is Mr Hendrik Gerhardus van der Merwe, a
former SARS employee.
The High Court order was obtained by the AFU in terms of the Prevention of
Organised Crime Act and seeks to preserve property belonging to persons who
have allegedly benefited from crime.
An independent curator has been appointed and will be responsible for
controlling the financial aspects of the seized assets. The list of assets
include 10 light aircraft that were stationed at Rand Airport, a large number
of vehicles and a number of properties registered in the name of Mr Delport,
his co-accused and associated entities.
For further media enquiries please contact:
On behalf of the AFU:
Lucinda Moonieya
Tel: (012) 845 6123
Cell: 082 926 7738
On behalf of SARS:
Adrian Lackay
Tel: (012) 422 4206
Cell: 083 388 2580
Issued by: South African Revenue Service
28 February 2007
