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News24.com | Alleged crime boss Nafiz Modack among 8 suspects arrested in R219m tax return fraud case

Eight suspects have been arrested in connection with a R219 million fraud case.

Eight suspects have been arrested in connection with a R219 million fraud case.

Eight people have been arrested in Cape Town in connection with a R219 million tax return fraud case.

The Hawks arrested the group, aged 30 to 62, at various premises around Cape Town on Wednesday. They allegedly pocketed around R46 million, said Hawks spokesperson Colonel Katlego Mogale.

Ruwaida Modack,  Bashir Syce, Yaseen Modack, Nadia Said, Dominique McLachlan, Kalsum van Der Schyff, alleged underworld kingpin Nafiz Modack and Faried van Der Schyff briefly appeared in the Cape Town Magistrate's Court on Wednesday, in connection with allegations of fraud, money laundering and a pattern of racketeering, according to the Prevention and Combating of Corrupt Activities Act, added Mogale.

"It is reported that several corporate entities that were registered as Value Added Tax (VAT) vendors were e-filing claims for refunds which could not be substantiated. The scheme entailed submission of false information through the South African Revenue Services' e-filing system," said Mogale.

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Most of the corporate entities existed in name only. Others were operational, but not at the level to justify the magnitude of the VAT refund claimed, said Mogale.

Mogale added:

In instances where supporting documents were submitted for the VAT refunds claimed, the information contained therein was false. These alleged activities prejudiced the South African Revenue Services over R219 million of which over R46 million was paid to the suspects.

Ruwaida Modack, Nafiz's mother, was granted R50 000 bail, Syce R25 000, Yaseen Modack R50 000, Said R20 000, McLachlan R10 000 and Kalsum Van der Schyff R10 000.

Nafiz Modack and Van der Schyff appeared separately from the group.

Van Der Schyff's case was remanded to 3 November for a bail application, while Modak's case was postponed to 22 November.

Nafiz Modack would remain in custody as he has matters outstanding - he has been implicated in the murder of Anti-Gang Unit detective Charl Kinnear, a foiled hand grenade attack on Kinnear's house in Bishop Lavis, the attempted murder of lawyer William Booth, and the extortion and kidnapping of a financial advisor. He also faces charges of reckless driving. 

The State alleged previously that he heads a criminal enterprise that works with a gang.

The rest of the accused will next appear again on 22 November.

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