A R370-million asset-seizure order — one of the largest ever — against a tobacco mogul and his co-accused was confirmed in the Pretoria High Court on Thursday.
Judge Willie van der Merwe confirmed a provisional restraining order against the assets of tobacco millionaire Hendrik Delport and his 12 co-accused.
The national director of public prosecutions (NDPP) last month obtained the urgent provisional order, allowing the Asset-Forfeiture Unit to seize assets worth R370-million pending the final outcome and a possible forfeiture order in a criminal trial.
The unit could not trace assets to the full amount, but seized items worth over R70-million.
They included 10 light aircraft, a private helicopter and several luxury cars. They were seized from Delport, his co-accused and their 36 business entities, including Phoebus Apollo Aviation, based at Rand Airport.
The curator appointed to take control of the assets was also authorised to search for further assets, including gifts to other parties.
Delport and the others pleaded not guilty in the Pretoria Regional Court in May 2004 on over 7 200 charges of fraud and contravening the Prevention of Organised Crime Act, including racketeering.
The state accused them of running an international cigarette-smuggling syndicate involving submitting false export documentation by which they allegedly falsely represented to the South Africa Revenue Service (SARS) that large quantities of cigarettes had been exported by some of them.
The cigarettes were purportedly exported to African countries, but were in reality allegedly sold in South Africa. The scheme allegedly enabled the syndicate to fraudulently claim back the input VAT from SARS and to evade excise duties.
SARS paid out over R58-million to a number of the close corporations due to the alleged false VAT returns. Four of the accused also allegedly evaded paying excise duties of over R147-million in respect of duty free cigarettes to the value of over R312-million.
Although the state has yet to conclude its case against the accused — whose trial is due to resume next month — the NDPP submitted there was a reasonable chance that Delport and the others would not only be convicted, but that the magistrate would at the end of the trial also grant a forfeiture order against them. — Sapa