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Al Jazeera undertook a massive task lifting the lid on some of Southern Africa’s largest gold-smuggling operations, exposing how the gangs are looting the nation, washing dirty cash, and aiding governments in circumventing international sanctions.

Al Jazeera’s Investigative Unit went undercover to infiltrate the large gold-smuggling rings to reveal the massive money laundering scheme, all nicely showcased in a four-part series released via the publication.

Based on dozens of undercover operations spanning three continents, and thousands of documents, showing how government officials and businesspeople are profiting off the illegal movement of gold across borders, Gold Mafia throws South Africa under the bus.

The series further revealed how a group of money launderers and gold smugglers had effectively taken over several South African banks by bribing key members, allowing the criminals to send large amounts of illegally obtained money overseas without raising the suspicions of the authorities.

In a speech to the Parliament of South Africa, President Cyril Ramaphosa said that the government has launched an investigation into several people involved in this gold smuggling and money laundering scheme per Al Jazeera.

“We are committed to preserving the integrity of our financial system in the interests of the broader economy and ordinary citizens,” Ramaphosa added on Thursday. “Details of the steps that are being taken cannot be divulged at this stage without compromising the investigation.”

He said that the investigation was in the “inquiry stage”.

Gold Mafia implicates Mohamed Khan, nicknamed Mo Dollars, who is a “sort of shadowy figure that controls money laundering in South Africa,” money laundering investigator Paul Holden told Al Jazeera:

Among Khan’s biggest clients was Simon Rudland, a Zimbabwean millionaire who owns one of the region’s biggest tobacco companies, Gold Leaf Tobacco. South African revenue officials have accused Rudland of evading taxes by selling his cigarettes on the black market.

Rudland authorised Khan’s company SALT Asset Management to carry out foreign exchange transactions on Gold Leaf’s behalf. Khan, who also owned another company called PKSA Group, then used a complex web of fake invoices, front companies and bank accounts to launder hundreds of millions of dollars to bank accounts all over the world, from Dubai to Mauritius to Switzerland.

Rudland authorised Khan’s company SALT Asset Management to carry out foreign exchange transactions on Gold Leaf’s behalf. Khan, who also owned another company called PKSA Group, then used a complex web of fake invoices, front companies and bank accounts to launder hundreds of millions of dollars to bank accounts all over the world, from Dubai to Mauritius to Switzerland.

Al Jazeera shows how thousands of dollars of cash were paid every month to these bribed officials, with the dodgy transactions only processed when bribed employees were in the office.

Rudland, meanwhile, has said that the allegations against him are part of a smear campaign by an unidentified third party and that he was not involved in the sale of illicit cigarettes and in gold or other smuggling. Khan, too, told Al Jazeera that all allegations against him were false and based on speculation, conjecture and manufactured and doctored evidence. He also denied bribing anyone who worked in the South African banking sector.

Everybody else involved, banks included, has also denied, denied, denied. Hopefully, it’s not that easy to get away, but you know, South Africa loves a good ostrich head in the sand.

[source:aljazeera]