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IOL News
21 hours ago
- Business
- IOL News
SA bleeds R3. 6 billion a year to fuel smuggling and tampering, says SARS
South Africa is losing around R3.6 billion every year because of illegal fuel Image: File South Africa is losing around R3.6 billion every year because of illegal fuel smuggling and tampering, according to the South African Revenue Service (SARS). According to the Revenue Service criminals are importing fuel without paying the correct taxes and mixing diesel with cheaper products like paraffin. "Over the past decade, countries along the Maputo Corridor (South Africa, Swaziland, and Mozambique) have become primary targets of the illicit fuel trade, which is driven by organised criminal networks that smuggle and illegally adulterate fuel," SARS said. "SARS has established that some importers declare fuel amounting to 40 000 litres or less, whereas investigation reveals that up to 60 000 litres of fuel are actually imported. This is called under-declaration, and documents are falsified to perpetuate this fraudulent activity," SARS also reported a national trend involving fuel storage and distribution depots in the illegal mixing of diesel with paraffin, a practice contributing heavily to revenue losses. "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" Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Sars added that government agencies are working together more closely to detect, prevent, and combat fuel adulteration and enforce the Customs and Excise Act. "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. In some cases, adulterated diesel analysed by in these investigations had up to 68% paraffin content" In a recent operation, SARS and SAPS targeted 23 sites in Gauteng, Mpumalanga, and KwaZulu-Natal and seized over 950,000 litres of contaminated diesel, shut down six illegal fuel depots, and confiscated assets worth R367 million. '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," SARS Commissioner Edward Kieswetter said. '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'. IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
3 days ago
- Business
- IOL News
Pension freeze for former NLC official amid serious fraud allegations
The pension fund of former National Lotteries Commission senior manager Sanele Dlamini was frozen. Image: File Former National Lotteries Commission (NLC) official, Sanele Dlamini, has been interdicted from cashing in on his pension, pending the outcome of the Special Investigating Unit's (SIU) investigation into allegations that he improperly authorised the payment of R3 million towards a project which never materialised. The SIU turned to the Special Tribunal to freeze Dlamini's retirement fund, which is due to be paid to him. Dlamini is a former senior manager of the grant operations of the NLC. The SIU is litigating on behalf of the commission to recover losses that it suffered as a result of irregular and unlawful practices. The SIU said it believes that Dlamini may be 'a man of straw', and if its investigations reveal any wrongdoing on his part, they will at least be able to recover the NLC money from his pension fund. The NLC had awarded the Motheo Sports Foundation a grant of R9 million for the construction of a sports complex. The first payment made was nearly R3.6 million. The SIU investigation revealed that this amount was not used for the funded project but was instead shared among several people and/or entities as an undue gratification. It was alleged that Dlamini authorised the payment of the money based on falsified progress reports, despite no work being done on the funded project. Investigations revealed that the land was used as a dumping site. A disciplinary inquiry subsequently found Dlamini guilty of gross negligence and misconduct, and he was dismissed. The SIU now seeks to preserve Dlamini's pension fund at Liberty Life Insurance, pending the outcome of a review application to recover the funds. Dlamini, in opposing the application, said it is clear that the sports foundation received the funds and not him. He was not part of any fraud or scheme to siphon off money from the NLC. He was not present when the project was approved. At that stage, he was the provincial manager for the KwaZulu-Natal office of the NLC. He asserted that he unfairly attracted blame for this entire saga for simply approving a payment of R3 million to the Motheo Foundation. He argued that the money must be recovered from the principal debtors, being the persons and entities who received the NLC money. Therefore, he should not be held liable. Dlamini said he based his approval of the progress report, the financial report, and visuals showing the site and work in progress. He stated that he was the victim of the fraud, as also the NLC.
The Citizen
3 days ago
- Business
- The Citizen
How the illicit fuel trade is robbing SA of billions per year
Investigators have found some diesel tankers where the fuel had a paraffin content of 68%. The prevalence of illicit fuels in South Africa is a growing concern for the country's financial and consumer interests. Much like illicit alcohol and cigarettes, fuel products are smuggled, underreported and illegally manufactured or altered for criminal gain. The South African Revenue Service (Sars) reported that illicit fuels cost the fiscus roughly R3.6 billion per year, while police have identified 23 hotspots in three provinces. Illicit fuel trade Gauteng, Mpumalanga and KwaZulu-Natal are the hardest hit as syndicates operate in close proximity to Mozambique's capital. 'Over the past decade, countries along the Maputo corridor have become primary targets of the illicit fuel trade, which is driven by organised criminal networks that smuggle and illegally adulterate fuel,' stated Sars. Gathered intelligence led to search and seizure operations at fuel storage facilities and depots, where fuel viscosity and composition are tested in tankers. Sars state that common tactics involve importers declaring fuel by 20 to 30% or diluting fuels with harmful additives. '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.' 'In some cases, adulterated diesel – analysed in these investigations – had up to 68% paraffin content,' Sars said. Negative effects of paraffin In January 2024, the Department of Mineral Resources and Energy found 70 fuel stations that were selling diesel adulterated with paraffin. Toyota South Africa Motors explained at the time that paraffin drastically deteriorates engine lubrication, as well as the cleaning of moving parts and the conditioning of seals. 'These components will fail with the repeated use of paraffin. Furthermore, the flashpoint of paraffin is lower than diesel, which could lead to engine knock, which can cause catastrophic engine failure,' said TSAM President and CEO Andrew Kirby. In the past four months, authorities have discovered just over 950 000 litres of contaminated diesel and assets worth R367 million. Authorities opened 13 criminal cases and impounded 12 transportation trucks carrying an average of 15 000 litres of falsely declared fuel upon import. Additionally, two washrooms — one of them mobile — were shut down. These washrooms are used to add chemicals to the fuel mix, which help to disguise illegal additives. Attack on society The multi-departmental operations include Sars' trade investigators, police, and the National Joint Operational and Intelligence Structure. Sars Commissioner Edward Kieswetter thanked authorities and warned criminals not to underestimate South Africa's resolve in clamping down on illicit trade. '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 acts threaten the very foundation of our society. Our message is clear: we will spare no efforts to crush them,' the Commissioner concluded. NOW READ: JRA allocated just 1% of amount needed to fix Johannesburg's roads
IOL News
13-06-2025
- Business
- IOL News
Dollar-obsessed Argentines have a newfound love for buying gold
Gold is winning over the hearts of Argentines, a nation once almost irrationally devoted to the dollar. Argentina's deep-rooted reliance on the greenback - the country ranks among top holders of the US currency, according to estimates by economists and former central bank officials - is now being challenged by a growing appetite for gold. From bullion and small bars to exchange-traded funds, Argentines are increasingly turning to the precious metal as an alternative store of value. The shift signals a profound change in investor psychology as the dollar no longer offers the same inflation hedge it once did. The ongoing cost-of-living surge in the US, coupled with a rise in the peso under President Javier Milei, has diminished the greenback's lure. For many Argentines, it is now merely a 'second-best' choice among safe-haven assets. The recent removal of foreign exchange controls for individual investors has accelerated that trend. Argentines can now purchase gold directly in pesos, even through interest-free installment plans, eliminating the need for dollars. That opened the door for small savers in search of a more stable store of value. 'It is becoming very trendy,' said Leonardo Echegoyen, director at Banco Piano, one of the few Argentine banks that legally sells physical gold with a certificate of origin and a purity rating of 999.9 parts per 1 000, the only type of gold that can be sold abroad. 'People want to earn a return on their dollars, and they're looking for that return in this commodity,' he said. Another driver for Argentines' newfound love for gold are fears that the US dollar might lose more of its value. The US currency is already down 7.5% against a basket of international currencies since the beginning of the year, after surging 4.4% in late 2024 after Donald Trump's election win. 'Little by little, people are starting to understand that monetary assets should be invested in something,' said Juan Piantoni, chief executive officer of Ingot, a safe deposit box provider in Argentine. Argentines have harbored a deep distrust of their banking system since the 2001 financial crisis, when dollar deposits were forcibly converted into pesos. That trauma left an estimated $200 billion (R3.6 trillion) outside the formal financial system - stashed in safe deposit boxes, real estate, or even unconventional hiding spots like mattresses. Echegoyen recalls one customer who brought in a stack of $100 bills fused into a solid block after storing them in a kitchen pipe that burst. 'Gold is more practical for people who don't know where to keep cash without it getting ruined,' he said. With a client base of around three million, Banco Piano has quadrupled the volume of gold imports from Switzerland in 2025. After making just two shipments in all of 2024, the bank has completed five so far this year. Not surprisingly, gold is gaining space in Argentines' safe deposit boxes - a place traditionally reserved for US dollars. 'Storing dollars in a safe deposit box isn't common practice in most countries. It's a uniquely Argentine habit,' Piantoni said. The logic, he explains, is simple: safe deposit boxes are meant for valuables that need to stay out of the reach of others. Globally, the price of gold has jumped more than 27% over the past year, hovering near record highs above $3 300 an ounce. The surge has been fueled by geopolitical tensions, stubborn price pressures and mounting expectations of interest rate cuts by major central banks. In Argentina, gold in jewellries is priced at around $114 per gram, with a buy-sell spread of 10% to 15%, positioning it as a medium- to long-term investment. Some purchases can be made in three or six interest-free installments, while banks are offering cash back of up to 30% - an attractive perk in an economy still battling with double-digit inflation. Argentines are allowed to buy as much as $7 200 in gold per month without disclosing the source of funds. A recent government bill aims to raise that cap to $12 000. Brokers, meanwhile, provide access to gold via exchange-traded funds like SPDR Gold Shares, known by its ticker GLD, rather than physical bullion. 'There's more demand for gold this year,' said Fabio Saraniti, a partner at local broker Win Securities. 'That happens because when financial assets rise, people want to buy. And when they fall, they want to sell.' Net inflows into the SPDR's ETF surged 170% year-over-year in the first quarter, pushing total investment demand to 552 tons, the highest level since early 2022, according to the latest World Gold Council report. Precious metals traders at top banks including JPMorgan Chase & Co. and Morgan Stanley posted their best performance in five years in the first quarter, in part thanks to an arbitrage opportunity that sparked a rush of bullion into the US. The trend is extending beyond the financial world. Leiva Joyas - one of Argentina's most established jewelers - has seen daily gold inquiries triple in 2025, reaching 300 a day. Sales have already doubled this year compared to 2024. 'People want to preserve their capital amid economic uncertainty. They know time deposits offer low returns,' said Daiana Azcona, a sales executive at Leiva Joyas. While companies remain barred from investing in physical gold, individual investors - many from the agriculture and finance sectors - are entering the market with a long-term perspective. Gold was once shunned by traditional investors, Echegoyen said. 'Now, even seasoned investors who had never considered it before are getting involved.' BLOOMBERG
IOL News
06-06-2025
- Automotive
- IOL News
Consumer Commission orders Millstock Cars to refund R269,000 for Ferrari repairs
Millstock Cars, a dealership in Cape Town, is challenging a National Consumer Commission (NCC) ruling that mandates them to refund more than R269,000 to a customer for repairs made to a faulty Ferrari. The issue started when Mychajlo Jevon Gambale purchased a used Ferrari for over R3.6 million in April 2021. However, just five months after the purchase, the car displayed a warning light and was diagnosed at Ferrari Cape Town with a faulty temperature sensor, requiring replacement at a cost exceeding R53 000. The dealership initially argued that the car was sold "voetstoots" (as is), thus denying liability for the sensor replacement. However, after negotiations, Millstock agreed to cover 50% of the repair costs and paid a deposit to Ferrari Cape Town. According to Gambale, after Millstock confirmed it would pay for the replacement of the sensor, the manufacturer, Ferrari Italy, identified an underlying issue with the Clutch Control Plane (CCP) and recommended that the entire CCP be replaced. Gambale demanded that Millstock pay for the replacement of the CCP, which was quoted at over R269 000. However, the dealership refused this request, prompting Gambale to escalate the matter to the NCC. Upon reviewing the case, the NCC sided with Gambale, issuing a notice demanding that Millstock refund the repair expenses for the CCP. In response, Millstock appointed consulting engineer and tribologist, Patric Swan, who found no evidence of mechanical damage or wear, asserting that the original diagnosis of a faulty sensor was accurate.
