Changing Face Of Zama Zamas

South African gold is being looted on an industrial scale.

The report says research by the Global Initiative Against Transnational Organised Crime shows that Dubai bought 34 tons of gold from South Africa from 2012 to 2016.

But this is not reflected in South Africa’s trading accounts.

Research estimates that the country loses about  about R14,4 billion through illegal gold mining every year.

Much of the looting apparently occurred during the height of state capture, between 2012 and 2016.

It has been linked to Sars’ alleged failure to probe the illicit economy.

illegal mining is mining activity that is undertaken without state permission, in particular in absence of land rights, mining licenses, and exploration or mineral transportation permits.

Former Sars commissioner Tom Moyane reportedly closed that unit, but Sars has announced it would be reinstated. More research by the initiative and Columbia University reportedly shows how organised crime rings conduct mining operations on an industrial scale.

Armies of illegal miners and international networks of buyers are reportedly being used to smuggle South African gold through places such as eSwatini  , to jewellery manufacturing hubs in Dubai, Mumbai and Karachi.

This illicit trade is being driven by rising commodity prices, the limited resources of the South African Diamond and Precious Metals Regulator, and closure of the Sars illicit economy investigative unit.

The modus operandi is reportedly to melt the gold down with legitimate gold at refineries run by criminal syndicates, and smuggle it out of the country via second-hand gold and scrap-metal dealers