SARS, Cipro lose millions is massive fraud

It says investigators believe a Pakistani syndicate with alleged terror links has looted hundreds of millions of rands from state and private sector coffers, sending some cash to foreign accounts and using the rest to fund lavish lifestyles in SA. A key component of their fraud was registering fake companies at Cipro to divert vast sums in tax refunds. Controls at Cipro are so poor, says the Sunday Times, that it easily cloned a multibillion-rand bank listed on the JSE, noting: 'With our Cipro registration certificate, we could theoretically open a company bank account and siphon off tens of millions in tax.' As the report points out, this would require the collusion of a bank and a SARS official but, as court papers related to Pakistani syndicate members on trial next month show, when millions are involved, accomplices are not hard to find. Seven Pakistani syndicate suspects are accused of defrauding SARS of tax refunds worth R78m. SARS is focusing on only five fraudulent refunds in this case but investigators expect to link many more to the syndicate. Full Sunday Times report