A major investigation into alleged tax fraud in South Africa has taken another significant turn following the arrest of a Nigerian national accused of leading a syndicate that allegedly defrauded the South African Revenue Service (SARS) of more than R500,000.
The suspect was arrested on Thursday, October 8, 2026, alongside a South African national in Siyabuswa, Mpumalanga, and the North West as part of Operation Jan Vas. The operation involved the Hawks’ Serious Commercial Crime Investigation unit, the North West police, SARS and the National Prosecuting Authority.
According to investigators, the Nigerian national allegedly used Clemco Consult Biz Solution, a company of which he is the sole director, to facilitate the submission of fraudulent value-added tax (VAT) returns between 2018 and 2020.
The investigation revealed that SARS suffered an actual financial loss of R523,724.79, while an additional R3,415,482.44 was identified as potential losses linked to the alleged scheme.
Hawks spokesperson Magonseni Nkosi said the two suspects and Clemco Consult Biz Solution appeared before the Siyabuswa Magistrate’s Court on Thursday for their first appearance in the matter. They were formally added to the charge sheet alongside other suspects arrested earlier in the week.
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The Nigerian national faces multiple charges, including fraud, theft, alleged violations of the Tax Administration Act and contraventions of the Prevention of Organised Crime Act.
Investigators allege that the syndicate manipulated the tax system by submitting false VAT returns across three tax periods and claiming refunds to which the individuals involved were not legally entitled. The money was allegedly channelled through business bank accounts before being transferred into personal accounts belonging to individuals suspected of benefiting from the transactions.
The latest arrests bring the total number of suspects apprehended in connection with the alleged scheme to 10. Six entities have also been charged in connection with the investigation, while implicated individuals reportedly include company directors and other suspected beneficiaries.
The development highlights the scale of the investigation and the importance of cooperation between law enforcement agencies and tax authorities in pursuing suspected financial crimes.
Although the arrests represent a significant step in the case, the allegations remain subject to judicial determination. The suspects are entitled to the presumption of innocence unless proven guilty by a competent court.
