South African miner accused of persistent misinvoicing

The largest trade union in South Africa’s platinum sector has alleged that more than 28 billion rand (R28 billion – US$1.8 billion ) has been illegally moved out of the country by mining company Samancor.

The Association of Mineworkers and Construction Union (Amcu) has now approached the courts to recover the money. 

Misinvoicing allegations

Allegedly through persistent misinvoicing, Samancor avoided paying the government taxes amounting to R28 billion the union alleges.

Amcu now wants the courts to compel Samancor to provide information on money it lost to alleged illicit financial flows over the years.

Three year investigation

The union has partnered with the Alternative Information and Development Centre (AIDC) and human rights attorney Richard Spoor to chase billions of rand allegedly siphoned from Samancor over several years through what they claim to be fraudulent and profit-shifting transactions. 

Amcu president Joseph Mathunjwa, along with the AIDC and Spoor, announced the start of the court battle to investigate several transactions during which it is claimed that Samancor, including its workers’ trust, which is a shareholder, lost billions. 

Mathunjwa said the case was the culmination of three years of work and announced that the union had offered R100,000 to any credible whistleblower who comes forward with valuable information.

Categories: Trade Based Financial crimes News

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