/ 31 January 2001

Scorpions sting crooked customs officials

OWN CORRESPONDENT, Johannesburg | Wednesday

SOUTH Africa’s crack investigating unit, the Scorpions, has teamed up with the SA Revenue Services (SARS) to raid the homes and offices of 26 customs officials suspected of being involved in corruption and fraud amounting to billions of rand.

The team confiscated computers, other electronic equipment and documents from the customs officials in a joint operation in Johannesburg and Pretoria, public prosecutions representative Sipho Ngwema said.

Beeld newspaper quoted Ngwema as saying their actions are connected to an Investigating Directorate for Serious Economic Offences (IDSEO) and SARS probe into VAT fraud, during which bribes in excess of R4.02m (in cash) and luxury gifts were offered to directors and staff members of these institutions.

Ngwema told Beeld that one of the homes which was raided had been that of Johan Beets, a senior director of the financial service group KPMG.

“In most instances these officials were involved in probes against the persons and institutions who reportedly committed VAT fraud,” he said.

A search warrant issued by the Pretoria High Court states that two listed companies, Profurn Group (controlling company for HiFi Corporation and Morkels) and Accord Technologies are also involved in the probe.

A former Accord director, Norman Asch, was arrested in December, Ngwema said.

Luxury gifts that were reportedly offered to the suspects since 1992, and which were specified in the court order, included holidays, airline tickets, mountain bikes, furniture, television sets and cellphones.

Ngwema added that most of the goods were seized, since they are intended to serve as evidence later.

Beeld said the court application stated that IDSEO is in possession of several sworn statements from suppliers who reportedly provided services to staff members of the organisations involved, and issued fraudulent invoices with inflated figures. Invoices were issued for furniture, car repairs, airline tickets and car hire firms.