THE taxman, liquidators and the Financial Services Board are taking a hard look at South African companies and individuals implicated in the Panama Papers.
Among the individuals is President Jacob Zuma’s nephew, Khulubuse, while the pension fraud company Fidentia is also under scrutiny.
Zuma was named in leaked documents held by Panama-based law firm Mossack Fonseca.
The documents state that Zuma was authorised to represent Caprikat Ltd, which is one of two offshore companies that acquired oil fields in the Democratic Republic of Congo in 2010.
But Zuma’s spokesman, Vuyo Mkhize, said Zuma had never owned an offshore bank account or used one to move finances.
The Panama Papers revelation about Zuma comes as liquidators attempt to recover losses from a 2009 mine deal involving Zuma’s Aurora Empowerment Systems.
Zuma was one of the directors of Aurora, a company that took over the management of two Pamodzi Gold mines. After the collapse of the mines, the directors were accused of asset stripping, fraud and negligence.
Pamodzi liquidators’ lawyer John Walker said yesterday they were following with close interest the developments associated with Zuma and the Panama Papers.
“We are considering all our options and we will be meeting with all stakeholders this week,” Walker said.
The leaked Panama Papers also link convicted Fidentia accountant Graham Maddock to Panama-based law firm Mossack Fonseca.
Maddock is said to have created two sets of offshore companies.
Fidentia was a pension investment company which, through a Ponzi scheme, stole more than R500-million of the savings of nearly 50 000 women and children.
Meanwhile, Financial Services Board spokesman Tembisa Marele said officials would reopen their Fidentia files following the data leak.
“The FSB investigated Fidentia in 2007-08 and found that while there were foundations set up with Panama links, no funds flowed to those foundations,” Marele said.
But in light of the data leaks, the FSB would once again look into the matter to see if further investigation or action was warranted.
SA Revenue Service spokesman Sandile Memela said efforts were already under way to obtain the information contained in the papers.
When that became available, details would be analysed and appropriate action taken, Marele said.
Experts said yesterday that South Africa had a reputation for moving illicit funds out of the country.
International think tank Global Financial Integrity spokeswoman Christine Clough said between 2004 and 2014, South Africa had lost R209-billion through illicit outflows.
Foreign currency economist Matthew Salomon said recovering hidden funds would be difficult because of a lack of international agreements.
But senior national Treasury official Ismail Momoniat said those breaking the law would “one day . . . get caught and face a mighty fine”.
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