The South African Revenue Service (Sars) says it is working closely with law enforcement agencies to combat the illicit fuel trade that costs the fiscus about R3.6 billion per year.
This involved the National Joint Operational and Intelligence Structure (Natjoints) carrying out several interventions over the past four months, the revenue service said in a statement.
According to Sars, a joint intelligence team, comprising Sars and South African Police Service officials, identified 23 targets across Gauteng, Mpumalanga and KwaZulu-Natal.
In addition, 13 criminal cases related to customs and excise contraventions and fraud were opened, supported by Sars trade investigators.
“The intelligence-driven joint enforcement interventions included search and seizure operations targeting certain fuel storage facilities and depots, as well as random sampling of tanker transport to test the fuel viscosity and composition,” Sars said.
“In some cases, adulterated diesel – analysed in these investigations – had up to 68% paraffin content.”
Over the past decade, countries along the Maputo Corridor, including South Africa, Eswatini and Mozambique, have become primary targets of the illicit fuel trade, which is driven by organised criminal networks that smuggle and “illegally adulterate fuel”, SAnews reported.
Sars said it had established that some importers declared fuel amounting to 40 000 litres or less, whereas investigations reveal that up to 60 000 litres of fuel were actually imported.
“This is called under-declaration and documents are falsified to perpetuate this fraudulent activity. Sars has also detected a national trend, where many of the fuel storage and distribution depots are involved in the adulteration of all fuel products, especially through illegal mixing of diesel with paraffin.
“Fuel adulteration costs the fiscus approximately R3.6 billion per year, according to statistics by the International Trade Administration Commission,” Sars said.
The joint intelligence team uncovered the following during its recent investigations:
- 953 515 litres of contaminated diesel fuel.
- Six fuel depots that were in contravention of Section 37 of the Customs and Excise Act 91 of 1964, as amended.
- Assets and contaminated fuel to the value of R367 274 330, leading to further investigation, and criminal and civil liabilities.
- Two so-called fuel ‘washrooms’, one of which is a rare mobile ‘washroom’ fitted on a transport truck, used to remove paraffin markers.
- Twelve fuel transport trucks, which were identified after suspected false declaration on importation of an average of 15 000 litres of fuel per tanker.
Sars said the illicit economy was a global phenomenon that threatened South Africa’s society, economy, and national security.
“Tax evasion, smuggling, illegal transactions, illicit manufacturing and fraud undermine the rule of law, erode public trust, distort markets, deprive governments of revenue, and enable corruption and organised crime.
“The pervasiveness of these illicit activities in our country demands that all enforcement agencies work jointly to curb their harmful practices. The illicit economy is complex and requires a whole-of-government response among public entities, the private sector, civil society, and international partners.”
Sars commissioner Edward Kieswetter expressed his appreciation for the Sars and SA Police Service teams for their efforts to detect, combat and prevent these crimes.
“The criminal syndicates engaged in these brazen acts have become emboldened to act callously, with no restraint, in pursuit of their rapacious and criminal gains.
“These syndicates can only underestimate our resolve to eradicate this criminality at their peril. These acts threaten the very foundation of our society. Our message is clear: we will spare no efforts to crush them.”
Kieswetter said state agencies would continue to collaborate and work within the law to combat illicit trade. - SAnews.gov.za
