Report: Billions in Gold Stolen From Mines in South Africa From 2011-2016

Tons of illicit gold was shipped out of South Africa at the height of state capture.

According to a report by the Sunday Times, a modern-day gold rush believed to be driven by organised crime syndicates saw the sale of 34 tons of gold to Dubai between 2011 and 2016.

However, this gold is not reflected in South Africa’s trading accounts, with research suggesting that illegal gold mining now costs the fiscus more than R14 billion a year.

According to researchers from the Global Initiative (GI) and Oxfam, this trade is being driven by rising commodity prices and the closure of Sars’ illicit economy team.

Speaking to the Sunday Times, Ebrahim Kadwa, head of the Hawks’ serious organised crime unit, said illegal mining had reached a point where it threatened SA’s economy.
“Syndicates smuggle gold through front companies like scrap-metal and second-hand goods dealers, melting it down with stolen jewellery and laundering it through jewellery markets in Dubai and India,” he said.
Oxfam mining expert, Thembinkosi Dlamini noted that Sars’ capacity to deal with illicit financial flows was decimated through political interference, and the mineral resources department was unable to recruit or retain the skills needed for monitoring.

“The government simply doesn’t know who is taking what from the ground,” he said.