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Brakpan’s very own Loren Louw, the alleged mastermind of a jaw-dropping R2.6-billion illicit gold racket, is facing the music – and it’s no catchy tune.

The 47-year-old appeared in the Brakpan Magistrate’s Court last Monday to answer for a staggering 1,176 criminal charges, including money laundering and breaking laws he probably should’ve Googled first, like the Precious Metals Act and Prevention of Organised Crime Act.

Louw’s glamorous life began unravelling back in 2015 when cops raided his Sonneveld home and allegedly found him in the thick of a “home industry” operation – producing over 6.5 kilograms of unwrought gold in his garage. Yes, you read that right, Brakpan’s answer to King Midas was running his empire from a backyard setup.

Seized documents from his home and his bookkeeper’s office kicked off a near-decade-long investigation, culminating in a court case that could swap Louw’s lavish lifestyle for something a bit more… state-sponsored.

“Unwrought gold was obtained, and the consistency thereof was changed to that of jewellery gold by melting it and mixing it with other alloys, thereby lowering its purity and disguising the origin thereof,” the lengthy indictment read, per News24.

According to the State, Louw didn’t just dabble in dodgy dealings – he went all in. His company, P510 Trading CC, supposedly stuck to buying jewellery only from authorised dealers under the Precious Metals Act. But it turns out that Louw’s definition of “authorised” was about as flexible as a fake gold bangle.

Armed with a jeweller’s permit valid from 2010 to 2015, Louw was allowed to trade in semi-fabricated precious metals from approved sources. Instead, it’s alleged, he took things a step too far by buying unwrought gold from unauthorised “persons” – which is legal speak for shady suppliers.

But Louw wasn’t about to let a minor technicality like legality get in the way. The State claims he turned the unwrought gold into cash by selling it to three refineries – AU Traders and Refineries, SA Precious Metals, and Metal Concentrators – which allegedly deposited millions into his account for his efforts.

According to the indictment, Louw unlawfully entered into transactions with all three companies.

Metal Concentrators SA paid Louw a staggering amount of more than R2.2 billion between June 2010 and February 2015 for the disposal of unwrought gold.

In June 2014, at the height of his alleged illegal operations, he received payments of more than R61 million in one day from Metal Concentrators SA. On other days in November and December, Louw received two payments of more than R27 million from the same company.

According to the indictment, SA Precious Metals paid his company more than R331 million. The indictment showed AU Traders and Refineries paid close to R28 million between June 2010 and January 2011.

Apparently, P510’s second-hand goods certificate – which expired way back on 31 December 2010 – didn’t include the right to melt jewellery. And yet, the company allegedly continued turning second-hand bling into unwrought gold, selling it to AU Traders, SA Precious Metals, and Metal Concentrators.

Here’s where it gets sticky: the State claims Louw pocketed every cent of the R2.6 billion generated from these transactions. As the sole member of P510 Trading, he’s accused of knowing full well that his dealings disguised the true origins of the gold, effectively laundering the ill-gotten gains.

The State further alleged the only reasonable inference consistent with the proven facts was that Louw used P510 as a cover for his illegal actions, and all illegal actions were “in fact performed by Loren Louw in his personal capacity for his own benefit”.

While Louw might’ve styled himself as a savvy businessman, the authorities seem keen to prove he was just melting trouble – and digging himself into a deeper hole with every deal.

South Africa’s glittering gold reputation is tarnished by a booming illegal trade, with former SARS executive Johann van Loggerenberg revealing that roughly R14 billion in illegally mined gold vanishes across borders annually. That makes Mzansi one of the world’s hotspots for illicit gold mining.

Van Loggerenberg painted a grim picture of the underground industry, estimating around 6,000 illegal mining sites scattered across the country. Stilfontein, currently making headlines, is just one of these hotspots. And the workforce? Anywhere between 10,000 and 40,000 illicit miners, or “zama zamas,” risk life and limb to fuel the black market.

While the legal gold industry shines under scrutiny, the illegal side casts a long shadow over South Africa’s economy and security – and with figures like Loren Louw allegedly cashing in, it’s clear this isn’t just small-time criminal activity.

Van Loggerenberg added Louw was a significant “cog in the wheel”.

“It is certainly the largest criminal prosecution of its kind. What stands to be shown, though, is whether he was a kingpin in the true sense of the word, a front for others, or a go-between.

“The indictment is silent on that. If he was caught melting a tiny amount of gold in his garage, it isn’t exactly congruent with how kingpins operate. Also, time will have to tell if he acted alone or in concert with others,” he said.

It’s about time they go for the guys at the top of this illegal gold mine.

[source:news24]