Export fraudsters face the music

Six cases pending over GEIS claims Alan Peat THE DEPARTMENT of Trade & Industry (DoT&I) has lost millions it feels are owed by companies which made claims under the government’s now defunct General Export Incentive Scheme (GEIS), according to Riaan de Lange, executive director of Deloitte & Touche’s trade and investment solutions. “It is alleged that the DoT&I overpaid companies under the scheme either due to fraud or technical errors,” he said. This scheme, he added, was launched by the government in the early 90s, designed to promote exports, and to counteract the anti-export bias in the SA economy. It ran until the end of December 1997, and by this time many manufacturers who had exported products had received payment from the DoT&I. “The manufacturers would submit their claims together with export documentation and a certificate from an audit firm,” said De Lange. “The DoT&I would pay out the claims based on the strength of this and the claimants were required to retain the documents for a period of five years.” At present there are five civil cases pending against various manufacturers, De Lange added, but the DoT&I has not released the names of the companies involved.