SARSThe Citizen reports that the SA Revenue Service (Sars) led a search and seizure operation across five provinces on Thursday in an attempt to bring down a coal-smuggling syndicate.

The operation was launched after Sars received information of tax-related crimes in Gauteng, Mpumalanga, KwaZulu-Natal, the Free State and Limpopo. The suspects involved in the diversion of high-grade coal included former Eskom employees as well as local and foreign nationals. “Coal trucks destined for power stations are diverted to designated coal yards where high-grade coal is replaced with low-grade or sub-standard product. The high-grade coal is then exported or sold to willing buyers. The low-grade coal is often blended with scrap or other materials and then delivered to power stations,” said Sars. Low-grade coal has been blamed for damaging infrastructure at some of Eskom’s power stations, leading to more severe bouts of load shedding across the country. Sars also said the coal-smuggling syndicates had led to SA losing more than R500 million. No arrests have yet been made.


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