Hawks arrest 10 in alleged R3.9 million SARS tax fraud probe

The Hawks have arrested 10 people in an ongoing investigation into an alleged tax fraud syndicate accused of submitting fraudulent VAT claims worth millions of rands to the South African Revenue Service (SARS).

Two more suspects were arrested on Thursday, 8 October 2026, in Siyabuswa, Mpumalanga, and the North West as investigators continue to trace money allegedly obtained through fraudulent tax returns.

The investigation, known as Operation Jan Vas, centres on alleged irregular VAT claims submitted between 2018 and 2020.

According to Hawks spokesperson Lieutenant Colonel Magonseni Nkosi, the investigation has identified an actual loss of R523,724.79 to SARS, with a further R3.4 million in potential losses.

In total, 10 individuals and six companies or entities have been charged in connection with the alleged scheme.

Two more suspects added to the charge sheet

The latest arrests involve a South African national and a Nigerian national who is allegedly the sole director of Clemco Consult Biz Solution, a company implicated in the investigation.

Both were arrested on warrants.

The Nigerian national was already in custody for unrelated matters and was brought before the Siyabuswa Magistrate’s Court by North West police.

The two suspects and Clemco Consult Biz Solution appeared in court on Thursday for their first appearance in this case. They were formally added to the charge sheet alongside accused who had been arrested earlier in the week, Nkosi said.

Court proceedings are continuing.

How the alleged SARS fraud worked

Investigators suspect that the accused worked together to submit false VAT returns and claim refunds they were not entitled to receive.

The alleged activity spanned three tax periods between 2018 and 2020.

According to the Hawks, money obtained through the transactions was allegedly moved through business bank accounts before being transferred into the personal accounts of individuals suspected of benefiting from the scheme.

“The money has not been recovered,” Nkosi said.

Authorities are continuing to investigate how the funds moved through the accounts, who allegedly coordinated the transactions and which individuals ultimately benefited.

The accused face multiple charges, including fraud, theft, contraventions of the Tax Administration Act and offences under the Prevention of Organised Crime Act.

The allegations have not yet been proven in court.

Hawks warn more suspects could be arrested

Mpumalanga Hawks provincial head Major General Nico Gerber said the operation was aimed at tracing the money and dismantling criminal networks suspected of exploiting the tax system.

“Fraud against SARS is not a victimless crime; it deprives the state of revenue needed to deliver essential services,” Gerber said.

He warned that investigators were still pursuing people believed to be connected to the alleged syndicate.

“Our investigation remains active, and those still outstanding should know that the net is closing,” he said.

The Hawks said the investigation remained ongoing, with officers from Nelspruit and Middelburg involved in efforts to identify further suspects and establish the full extent of the alleged fraud.

SARS investigation continues as authorities trace funds

Operation Jan Vas involves cooperation between the Hawks’ Serious Commercial Crime Investigation unit, SARS, North West police and the National Prosecuting Authority.

Investigators are continuing to follow the financial trail and examine the roles allegedly played by company directors and other individuals linked to the transactions.

While the arrests mark further progress in the investigation, authorities have yet to recover the money identified as lost through the alleged scheme.

Further arrests remain possible as the Hawks work to establish who was involved and where the funds went.

Follow Joburg ETC on Facebook, Twitter, TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com

Source: IOL