The Hawks' commercial crimes unit has launched a probe into the financial affairs of two company directors who allegedly embezzled millions of rand, Cape Town police said on Friday.
“Senior unit investigators are in possession of sensitive documentation which indicates that a 50-year-old Cape Town company director allegedly committed tax-related fraud involving Sars to the tune of R942 838,” Captain FC van Wyk said.
The businessman was a former financial consultant who dealt with pension money belonging to a well-known clothing industry trade union.
“The company director is also linked to invoice fraud involving R7 million pertaining to two companies. According to records, value added tax (VAT) monies had not been paid to Sars but channelled elsewhere.”
The second company director, a 42-year-old man, allegedly siphoned a large amount of cash from an empowerment trust into his personal account.
“Allegations against him amount to theft from the trust and its assets involving R15 million. Investigations are ongoing.”
The men were arrested on Thursday night and expected to appear in court on Monday. – Sapa