Khoza 'treated like gangster Al Capone'

Published Aug 23, 2001

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By Marvin Meintjies, Marbeline Goagoses and Charles Phahlane

Soccer boss Irvin Khoza was being treated like famed gangster Al Capone, his lawyer said after news that the cabinet had been briefed on his arrest and tax evasion charges.

Police arrested Khoza last week and charged him with possession of an unlicensed firearm and ammunition. He is free on bail of R3 000.

The firearm, a .303 rifle, and ammunition were discovered at his home after it was raided by tax officials raided.

They confiscated boxes of documents relating to his financial affairs and laid charges of tax evasion involving millions of rands.

Police were called in, apparently with Khoza's permission, when the rifle was discovered.

A document detailing the alleged smuggling of gold and diamonds from 1991 to 1996, involving several prominent people, was also found in Khoza's home.

The document has now become the subject of an investigation instituted by National Police Commissioner Jackie Selebi.

Meanwhile, it has emerged that the cabinet was briefed on Wednesday about the arrest and tax evasion charges against Khoza.

Government spokesperson Joel Netshitenzhe said the cabinet was briefed on the recent action by the law enforcement agencies and the SA Revenue Service (SARS).

"We appeal to soccer fans that we are dealing with a matter that requires compliance with tax laws, and should not be seen as a matter relating to soccer," Netshitenzhe said.

But Khoza's lawyer, Daniel Erasmus, said: "It appears they are trying to pull an Al Capone on him."

Capone, the gangster and smuggler during America's Prohibition era, when the sale of alcohol was illegal, was jailed for tax evasion after law enforcement authorities failed to pin more serious criminal charges on him.

On Thursday, The Star reported that Khoza was linked to 25 companies as a member or owner. Just four of these companies - Naledi Petroleum Holdings, Excel Petroleum, African Cup of Nations Company and Orlando Pirates - are still operating.

The Star has now established that Khoza is registered as a current or previous member of 22 more businesses. Among them are Irvin Khoza Investments, NSL Spectator Benefits, Nkosana Investment, Windy City Properties, and KMS Marketing and Promotions.

Erasmus has filed a formal complaint with the commissioner of SARS regarding alleged transgressions of the secrecy provisions of the Income Tax Act, which binds SARS not to disclose information regarding taxpayers' affairs, even to the police.

"In principle we have reached agreement with SARS on the process to be followed moving forward. We can now complete the investigations on both sides to establish whether there is any substance to these wild allegations," Erasmus said.

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