JOHANNESBURG - The South African Revenue Service's Anti-Corruption Unit: Special Projects rearrested Itumeleng Malotsa on Thursday morning, in relation to a further five company hijacking cases, bringing the total to six. Malotsa was currently out on bail following his arrest in September in relation to another case.
According to SARS spokesman Adrian Lackay he will appear in the Johannesburg Magistrates Court this morning. The state will oppose his bail application.
Earlier this year Malotsa was inserted, on the CIPRO database, as the sole director of a number of companies including: Gap Distributors, AFC Ltd, Vanern Investments, Nestle Purina Petcare (South Africa), and A Million Up Investments 48. Attempts were made to set up new bank accounts in the companies' names and to switch the banking details held by SARS so that tax refunds would be paid to the fraudulent accounts.
Lackay states that the potential loss in the six cases was R10,574,502.42. However swift action by SARS meant that the actual loss was kept to a mere R19,000.00. "Another suspect was identified and is under investigation. No internal collusion has been established and the investigation into this syndicate continues."
In a related company hijacking case one "Kenneth Mduduzi Hlatshwayo", 28, was fraudulently inserted as the sole director of CHM Vuwani Computer Solutions (KZN) in March 2010. The fraudsters set up an account with Standard Bank and an effort was made to switch banking details at SARS. However, SARS red flagged the transaction before any money was paid out.
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