SARS and the Hawks have dealt a major blow to the illicit alcohol trade after raiding a warehouse in Kempton Park, Gauteng, and uncovering thousands of litres of suspected ethanol linked to a potential R9.1 million tax loss.
The South African Revenue Service (SARS), working with the South African Police Service’s Directorate for Priority Crime Investigation (Hawks), carried out the intelligence-led operation on Wednesday as part of its intensified crackdown on the illicit economy.
Officials intercepted a 26,000-litre consignment of 96% ethanol that had been imported by sea and declared as being in transit to another African country. However, SARS said the shipment was instead diverted to an unlicensed and unregistered warehouse in Kempton Park, where it was being offloaded into 1,000-litre containers.
According to SARS, the consignment is one of four linked shipments under investigation. Had it been legally imported into South Africa, the alcohol would have attracted about R9.1 million in excise duties and taxes.
Investigators also found several storage tanks and additional containers at the warehouse. Authorities suspect these hold a further 28,000 litres of ethanol, although the contents are still being tested.
