A Gqeberha company director has been arrested in connection with a multi-million-rand VAT fraud scheme allegedly designed to siphon more than R34 million from South Africa’s national fiscus.
The Hawks’ Serious Commercial Crime Investigation unit arrested 51-year-old Phakamani Joseph Takuta and his company, Ilingelethu Trading and Projects (Pty) Ltd, on 19 November. Takuta appeared the same day in the Gqeberha Specialised Commercial Crimes Court and was released on warning.
According to Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana, the arrest is linked to “an alleged large-scale Value Added Tax fraud scheme amounting to R34.7 million.”
Investigators allege the fraud occurred between 2022 and 2023, when Takuta submitted falsified VAT 201 returns to the South African Revenue Service (SARS). SARS reportedly detected discrepancies and referred the matter to the Hawks for further investigation.
Authorities claim the input tax claimed was “neither truthful nor supported by legitimate business transactions,” and that the amounts declared were not based on valid invoices and no real trade had taken place during the relevant VAT periods.
The Hawks described the conduct as a “deliberate and calculated attempt to defraud the national fiscus,” placing SARS at risk of a significant financial loss.
The case has been postponed to 16 January 2026 to allow Takuta time to secure legal representation.
