Africa-Press – South-Africa. JSE-listed banking and financial services group Sasfin says it has put two of its employees on precautionary suspension as it probes their relationship with cut-price cigarette producer Gold Leaf.
Last week, the SA Revenue Service (SARS) won a court bid to freeze the assets of Gold Leaf and its two directors, Simon Rudland and Ebrahim Adamjee.
The tax agency has accused the tobacco group of owing up to R3 billion in back taxes, including interest and penalties payments. Gold Leaf has denied the claims.
Sasfin said it closed the accounts of Gold Leaf and associated companies in 2017 when it discovered “suspicious transactions,” which it said it reported to authorities.
It added it only became aware of allegations made by SARS this year that some of its employees may have conspired with Gold Leaf.
“Sasfin then commissioned its own independent investigation into this matter which is ongoing; Sasfin has shared evidence that was identified through this investigation with SARS,” it said.
Sasfin said its probe had resulted in “cogent evidence” implicating one former “rogue” employee.
“This ex-employee is alleged to have colluded with others five years ago, which Sasfin became aware of in 2022, to abet fraudulent activity by obscuring historic records relating to this matter,” it said. “The ongoing investigation by Sasfin is looking into the actions of these other employees.”
The bank said that two employees have also been suspended as a “preliminary precautionary measure” without providing further information.
Last year, British American Tobacco SA (BATSA) said research showed that Gold Leaf brands were selling at below SA’s minimum collectable tax price. These “cheap” smokes were bilking SARS out of millions of rands in tax receipts, it said.
Gold Leaf has denied allegations that its cigarettes are too cheap. It has accused BATSA of launching a “smear campaign” against it in a bid to snatch market share.
Gold Leaf’s brands include Voyager, RG, Savannah and Chicago.
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