‘Why has Mazzotti escaped prosecution?’ – Madlanga Commission evidence sparks outcry
· Citizen
Tax Justice SA has challenged the National Prosecuting Authority (NPA) to explain why Carnilinx CEO Adriano Mazzotti has never been prosecuted despite allegedly admitting to tobacco smuggling, tax evasion, and attempts to corrupt South African Revenue Service (SARS) officials.
Allegations of illicit tobacco trading involving Carnilinx came under renewed scrutiny at the Madlanga commission, following alleged admissions made by Mazzotti.
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Mazzotti
Evidence leader Adila Hassim introduced a “voluntary submission” from Mazzotti, received by the commission’s legal team.
In his letter, Mazzotti raised objections to claims made in an affidavit by commission investigator Tshepo Nyatlo, arguing that they were damaging to Carnilinx.
The Madlanga Commission heard that Mazzotti’s admissions formed part of a confidential 2014 settlement with SARS.
Unlawful tobacco imports
In the affidavit presented to the Commission, Mazzotti admitted to unlawful tobacco imports, manufacturing cigarettes “off the books”, conducting illegal surveillance of SARS officials and paying R800,000 in cash to a legal adviser believed to have influence over SARS officials.
Tax Justice SA founder Yusuf Abramjee said South Africans deserve answers.
“The NPA must address one simple but very crucial question,” he said. “If someone admits to serious crimes involving tax fraud, illicit tobacco trading and attempts to corrupt public officials, why was there apparently no criminal prosecution?
“It is common practice to settle a tax debt. But can South Africans now settle their way out of crime?”
Evidence
The Commission also heard evidence of a close relationship between Carnilinx director Mohamed Sayed and suspended Crime Intelligence Major-General Feroz Khan, who survived an apparent assassination attempt last week before he was due to testify.
WhatsApp exchanges placed before the Commission appear to discuss illicit tobacco investigations and reveal an unusually close relationship between the two men.
Corruption Watch
Abramjee said the latest evidence reinforced long-standing concerns that organised crime may have enjoyed protection from within parts of the criminal justice system.
He said Corruption Watch has also questioned why no criminal prosecutions have followed major investigations by SARS, the Financial Intelligence Centre, the South African Reserve Bank (SARB) and other state agencies into an alleged tobacco and gold smuggling network centred on Gold Leaf Tobacco Corporation and businessman Simon Rudland.
“According to Corruption Watch, investigators linked the alleged network to about R8.2 billion in unpaid tax and referred more than 100 individuals and entities to the Hawks and the NPA for investigation.
“However, no criminal charges have been laid against Rudland or others in connection with those allegations of illicit tobacco trading, gold smuggling, money laundering, tax fraud and billions of rand flowing offshore,” Abramjee said.
‘Worrying pattern’
Abramjee added that South Africans are seeing a “worrying pattern.”
“On one hand, we have Mr Mazzotti’s admissions of serious criminal conduct that apparently resulted in no prosecution. On the other hand, we have years of investigations, allegations involving R8.2 billion in unpaid tax and referrals by multiple state agencies, yet still no criminal charges.
“The NPA owes the public an explanation. If there is not enough evidence to prosecute, it should say so. If there is, South Africans deserve to know why these cases have not reached a courtroom,” Abramjee said.
The Citizen has reached out to the NPA for comment. Their response will be included once received.