R77-million rand fraud suspects in court

Three suspects are expected to appear in the Wynberg Regional court tomorrow (26/10/2009) in connection with fraud estimated at R77-million. Police believe the three were part of a ring that fraudulently changed details of a number of companies at the receiver of revenue and then received rebates due to these companies. In one case, a rebate of over R30-million due to an international IT company was paid into the account of the syndicate (see article).

The trail of the money shows that the amounts were quickly disbursed to a number of other accounts of companies believed to have been created for the purpose of laundering these ill-gotten funds.

Already, a Pakistani national has been in prison for a number of months on suspicion that he is one of the kingpins for the syndicate. Aliraza Syed Naqvi (see here) was denied bail and is expected to appear in court again in December.

The three were arrested in Johannesburg - a couple in Woodmead and another Pakistani national in central Jozi. The couple had their luxury cars - a BMW X5 and an Audi Q7 confiscated on suspicions they were proceeds from the crime. The South African Police's elite unit, the Hawks is investigating more people and expect to make further arrest. Already a number of addresses were raided in Alexandra, Sandton, Buccleugh and Soweto.

The scheme came to the attention of the police after one of the companies reported the fraud in March this year to the Germiston Commercial Branch.

Statement issued by Musa Zondi, Directorate of Priority Crimes Investigation, South African Police Service, October 25 2009

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