Nigerian national nabbed for leading South African tax fraud syndicate

A Nigerian national was arrested on Thursday for using his company, Clemco Consult Biz Solution, of which he is the sole director, to lead a tax fraud syndicate that scammed the South African Revenue Service of over R500,000.
The Nigerian national was nabbed alongside a South African national in Siyabuswa, Mpumalanga, and the North West as part of Operation Jan Vas, by the Hawks’ Serious Commercial Crime Investigation unit, in collaboration with the North West police, SARS and the National Prosecuting Authority.
The arrest brings the total to 10 in the police net over the syndicate’s alleged submission of fraudulent value-added tax returns between 2018 and 2020.
The Nigerian national was arraigned in the Siyabuswa Magistrate’s Court on multiple charges, including fraud, theft, contraventions of the Tax Administration Act, and violations of the Prevention of Organised Crime Act (POCA).
The Hawks spokesperson, Magonseni Nkosi, said six entities were also charged in connection with the alleged scheme, adding that investigators established SARS suffered an actual loss of R523,724.79, with a further R3,415,482.44 in potential losses.
Mr Nkosi said, “The two suspects and Clemco Consult Biz Solution appeared in the Siyabuswa Magistrate’s Court on Thursday for their first appearance in this matter and were formally added to the charge sheet alongside their co-accused, who were arrested earlier this week.”
The suspect allegedly colluded to manipulate the tax system by submitting false VAT returns over three tax periods, from 2018 to 2020, and claimed refunds they were not legally entitled to receive.
According to investigators, the money was channelled through business bank accounts before being transferred into the personal accounts of individuals who allegedly benefited from the scheme.
Mr Nkosi said the implicated individuals included company directors, while others were suspected of receiving proceeds from the alleged fraudulent transactions.
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