Latest news with #R27
The Citizen
15-07-2025
- Business
- The Citizen
SA losing nearly R30bn to illicit cigarettes as Sars tools face delays, says Godongwana
Illicit cigarette trade has become a major economic and enforcement issue. Efforts by the South African Revenue Service (Sars) to curb the illicit cigarette trade have been hampered by delays, with South Africa losing nearly R30 billion over the last five years. This was revealed by Finance Minister Enoch Godongwana in a parliamentary reply. EFF MP Thapelo Mogale asked the minister to disclose the total revenue lost as a result of cigarette smuggling and the illicit trade. He also requested information on the measures introduced to tackle the issue and how effective these have been in recovering lost tax income and ensuring offenders are prosecuted. Godongwana on illicit cigarette trade losses In his written reply, Godongwana said illicit trade and smuggling are 'hard to reliably quantify' given their covert nature. However, he pointed out that the illicit cigarette trade has become a major economic and enforcement issue, with estimates indicating that as much as 70% of cigarettes sold in the country are illegal. This has resulted in annual tax revenue losses exceeding R27 billion. ALSO READ: Illicit tobacco sales a drag on excise tax collections The minister explained that according to Sars data, revenue from tobacco and cigarette products dropped from R13.4 billion in 2015-16 financial year to R9.4 billion in 2024-25, a 29.6% (R4 billion) decline over ten years. The most notable drop, of 44.9%, occurred in 2020-21 due to the cigarette ban during the Covid-19 lockdown. Sars measures against illicit cigarette trade Sars, Godongwana highlighted, has implemented a multifaceted strategy to combat the scourge of illicit trade of tobacco and cigarettes. He said the tax authority has adopted a long-term strategic approach that includes frontline interventions, targeted audits, and the use of advanced technology. Regarding frontline operations, the minister explained that seizures of illicit cigarettes are being conducted at various ports of entry by customs border operations teams, in collaboration with other government agencies. These efforts also extend to inland areas. 'This ensures that Sars does not only focus on revenue recoveries, but [also on] removing illicit goods from circulation.' READ MORE: SA loses R30 billion in revenue due to illicit trade in cigarettes and liquor He emphasised that compliance audits are prioritised, covering the entire value chain, to ensure adherence to relevant laws. 'This methodology enables an end-to-end audit of the entire value chain and ensures that a company is scrutinised from the point of raw material supply, its entry into the manufacturing warehouse, to calculating how many cigarettes could be produced at any given time, considering the appropriate yield and capacity analysis.' Godongwana pointed out that Sars has integrated data and advanced technologies to monitor the tobacco supply chain and detect illicit activities. This involves the use of CCTV surveillance at manufacturing facilities to monitor production and prevent tax evasion. However, this initiative has faced delays due to legal challenges from certain industry stakeholders. 'As a stop-gap measure, Sars intends placing inspectors at these factories, on a full-time basis, depending on the availability of funding and budget. 'In addition, cigarette counters were made mandatory for all licensed manufacturers to assist Sars with production statistics.' Investigations and arrests Another tool in the fight against illicit trade is Sars' criminal investigation unit, which was established to probe complex tax evasion schemes. Godongwana said the unit continues to investigate cases involving tax non-compliance, smuggling, diversion, ghost exports, and misdeclarations, especially in high-risk industries such as tobacco and cigarettes. The minister revealed that international trade agreements and tools are being used to improve intelligence sharing and strengthen enforcement against illicit trade. He highlighted specific enforcement successes, including arrests and prosecutions. READ MORE: JMPD cracks down on illicit cigarette smuggling in Brixton The Sars criminal investigation unit has handed 129 customs and excise-related cases to the National Prosecuting Authority (NPA) over the past five years. Currently, 105 of these are on the NPA roll, with 33 currently on trial and 72 awaiting trial dates. Eight of these cases specifically involve illicit cigarettes and tobacco. Four are currently on trial, while the remaining four are pending trial dates. Godongwana added that 32 customs and excise cases have resulted in successful convictions.
The South African
15-07-2025
- Business
- The South African
Here's HOW much fraudulent ghost tokens cost ESKOM annually
Eskom has probed the illicit creation, transfer and use of ghost tokens in South Africa, and the numbers are worryingly high. Leaders say the state-owned entity needs to get on top of these illegal ghost tokens being distributed countrywide. Essentially, they allow the user free electricity, and it is costing Eskom and South African taxpayers billions annually. Electricity expert, Chris Yelland, believes these counterfeit ghost tokens cost Eskom as much as R27 billion every year. Additionally, this is over and above a recent investigation into procurement fraud at Eskom at the start of 2025. Investigators found R180 million in kickbacks for contracts at certain power stations. The state-run power utility absorbs the cost of ghost tokens three-fold. Image: File For those who are unaware, Eskom ghost tokens are created through unauthorised access to Eskom's Online Vending System (OVS). The aforementioned requires direct collusion with corrupt Eskom insiders. It has been reported that Eskom insiders have compromised the OVS to create and sell fraudulent ghost tokens. They are able to gain unauthorised access to the system and generate legitimate tokens. These are then sold to both suspecting and unsuspecting customers, often at a wildly discounted rate. Worse still, the money goes directly to the fraudsters … A lack of revenue, producing electricity for free and then redirecting resources to combat the scourge has seen prices increase 450% in two decades. Image: File Furthermore, because these ghost tokens are not tied to any legitimate transaction, the revenue generated does not go back to Eskom. Essentially, this doubles the overall revenue loss for government and ensures that ghost tokens are not a victimless crime. Plus, the state-owned entities efforts to address the constant breaches diverts critical resources away from keeping the lights on. Yellend further explains, in low-income areas like Soweto, as much as 80% of the electricity delivered by Eskom is not paid for. Municipal arrears from this persistent non-payment now exceeds R100 billion. The power utility needs to make this shortfall up somehow, often with the only recourse being increased tariffs for paying customers. Between 2007 and 2025, the cost of electricity has risen 450%. Free electricity is available to qualifying households, but the uptake is dropping each year. Image: File Meanwhile, Stats SA has revealed some telling data on the decline of indigent households taking advantage of Free Basic Services at the same time. Between 2014 to 2024, the number of residents getting free electricity dropped from 25% to 14%. And yet, 80% of South African households – an estimated 5.4-million residents – are eligible for the service but choose not to receive it. Some households qualify for 100% subsidies, while others only qualify for less, depending on the criteria set. On average, free basic electricity and water includes 50 kWh of power and 6 000 litres of water per month. Contact your local municipality for more details in your area if you think you qualify. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
08-07-2025
- Business
- IOL News
Royal AM plunges further deep into trouble with the courts and PSL
IT doesn't rain but it pours for beleaguered Durban business woman Shauwn Mkhize and her football club Royal AM, with the Pretoria High Court on Tuesday delivering another 'scathing judgement' against the two parties. The judgement details are staggering and show that the National Soccer League (NSL)was misled on a number of occasions and that it (the league) had enough reason to expel the Pietermaritzburg-based club even prior to them (the club) going into administration. Backing this judgement, the court cited that: -Contravention of Article 14.6: Royal AM changed its shareholding and directorship in June 2023 without PSL's prior written approval. -Contravention of Article 10.14: The club misrepresented its directorship in its membership renewal application in July 2024. -Contravention of Article 10.16: Royal AM was unable to fulfil its obligations, including failing to play fixtures and honour financial commitments. All this happened before the club was put under curatorship by the South African Revenue Services (SARS) months ago due to Mkhize's troubles with the taxman. That came with the freezing of club accounts and therefore unable to honour their fixtures and resulting in the Board of Governors (BoG) of the NSL expelling them (the club) from the Premier Soccer League (PSL) during the 2024/2025 season. All this comes as Royal AM are still at loggerheads with the PSL with attempts to oppose the league's decision to expel them. When Royal AM was confirmed to have purchased the status of Bloemfontein Celtic, reports were that it was purchased by Mkhize's close family member by the name of Nosipho Ngubo. That was due to Mkhize having another matter with the PSL at that time. In the judgement, many shareholders are cited to have obtained stakes in the club as off June 2023, after Shauwn Mkhize and Andile Mpisane resigned appointing a Mr Shamish Sadab as sole director. Last week, Royal AM were stripped of the R27 million sponsorship by the Msunduzi Municipality. Reasons given by the municipality were that the sponsorship deal was that it would be in place on condition of the club staying in the PSL.
The Citizen
07-07-2025
- The Citizen
Tragedy in Ruimsig: Man dragged 1km in fatal hit-and-run incident
A 53-year-old employee of Damon's Dairy in Ruimsig was killed in an alleged hit-and-run incident near his residence on 27 June, leaving his family and colleagues in shock. The Roodepoort Northsider spoke to Michelle Stewart, the victim Norman Sibanda's employer, who explained the tragic event in which their long-time employee was brutally killed. According to Stewart, the hit-and-run occurred on Pierre Road in Ruimsig, just 30 metres from Sibanda's gate. She stated that after Sibanda was struck by an unknown vehicle, the driver turned the vehicle right, into the street, and ran him over a second time, without stopping or braking. Sibanda was then dragged for another kilometre down Pierre Road. A friend of Sibanda's, who is also a security guard in the area, discovered his body in the road and alerted the authorities. Stewart later shared CCTV footage of the incident on social media, calling on witnesses to come forward as investigations continue. The neighbourhood has been left shaken, with many residents expressing grief and outrage. The community has rallied to support the Sibanda family as they mourn the loss of their loved one, and there have been widespread calls for justice. Bronwyn Kloppers, a neighbour who knew Sibanda well, launched a BackaBuddy campaign to raise the R27 000 needed to repatriate his body to Zimbabwe. Donations can be made via this link: Stewart shared her sorrow about the devastating loss. 'My heart is sad and heavy, and Norman was part of our family. He was a beautiful soul; he had a smile that could light up your day in an instant.' She also spoke about Sibanda's role on the farm. 'He was the milker and caretaker of our cows; they loved him. When he called them, they came running, and the dogs loved him. He had a beautiful connection with animals, and our bull, whom we all ran away from, Norman could walk straight up to and kiss. Norman was magic.' The Honeydew Police Station did not respond to the Northsider's request for an official statement. Sergeant Molupe referred enquiries to the provincial spokesperson. Colonel Masondo was contacted but is currently on leave. Colonel Nevhuhulwi was also approached but could not be reached. The Northsider will provide updates as soon as further information becomes available from the police. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Eyewitness News
07-07-2025
- Politics
- Eyewitness News
State expected to present final charge sheet in R27 million corruption case involving Mabe
JOHANNESBURG - The State is expected to present the final charge sheet in the R27 million corruption case involving former African National Congress (ANC) national spokesperson Pule Mabe. Mabe, along with six others, will be appearing at the Johannesburg Specialised Commercial Crimes Court sitting in Palm Ridge on Monday morning. They are charged with several counts of fraud, money laundering and contraventions of the Public Finance Management Act. The charges relate to a 2017 tender scored by Mabe's company, Enviro Mobi, to supply 200 three-wheeler motorbikes to waste pickers in the City of Ekurhuleni. READ: Pule Mabe's lawyers claim there are 'errors' in NPA's draft charge sheet It's been nine months since Mabe, and his co-accused made their first court appearance. During that time, Mabe has effectively paused his political career. His legal representative, Zola Majavu, said the former member of Parliament (MP) is unhappy with the delays in the case. 'He's not very happy but he doesn't locate himself above the law. It's not a nice thing to be subjected to court processes with your wife. The toll is taking on them. It's unbearable but that is how the legal cookie crumbles and they have to stick it out like everybody else.' At this stage, it's common knowledge that the Gauteng government paid the full amount for the three-wheeler bikes, however, not all of them were delivered. All seven accused have indicated they intend to plead not guilty.
