By Lehlohonolo Lehana.
The South African Revenue Service (SARS) has launched a criminal probe into Hazim Mustafa, the buyer of buffaloes from Phala Phala, a farm owned by President Cyril Ramaphosa.
Mustafa is a Sudanese millionaire, living in Dubai, who paid $580,000 for 20 buffaloes.
The move by SARS arises from accusations that the hefty sum was not appropriately declared, thereby potentially breaching tax and currency regulations.
A Sars spokesperson told News24 that it was prohibited by law from disclosing confidential taxpayer information, “including any investigations involving taxpayers”.
The docket has since been transferred to the Directorate for Priority Crime Investigation, or the Hawks.
Hawks spokesperson, Brigadier Thandi Mbambo, confirmed the investigation and that Sars was the complainant, but said no further details could be disclosed as the probe was ongoing.
On December 5,2022, Mustafa told Sky News that he paid $580,000 in cash for 20 buffalo from Ramaphosa’s Phala Phala farm in December 2019 — but had no idea that the animals, or the farm itself, were owned by the President.
Mustafa arrived in December 22,2019 at OR Tambo International Airport in Johannesburg with $600,000 in cash, which he claims he declared. According to him, he was in South Africa for his wife’s birthday.
The couple were staying at Sun City in North West, and it was at the hotel that Mustafa said he first heard about Phala Phala.
“I was sitting at the hotel — Sun City — and I met one guy who was also in breeding, and he told me that the best quality you can find was in Phala Phala, which [was] not so far from [there]. He didn’t know that I had money,” said Mustafa, who added that he couldn’t recall the man’s name.
According to Mustafa, the mysterious breeder told him he would be able to purchase a larger quantity of buffalo than normal at Phala Phala farm.
eNCA’s Annika Larsen visited Mustafa and his South African wife, Bianca O’Donoghue, at their home in Dubai, to get Mustafa’s version of events, leading up to his purchase of the buffalo, which he still hasn’t received.
Speaking to Larsen about the Phala Phala purchase — and dressed in head-to-toe Gucci — Mustafa said he was surprised to be dragged into the media spotlight of an international scandal, for what he considered to be “a normal business transaction”.
“It’s nothing to do with His Excellency the President — I just went there and I bought cattle and buffaloes from the farm,” said Mustafa.
This incident subsequently sparked a significant scandal which has since dominated headlines and pushed the President to the verge of resignation.
A former cleaner at Phala Phala, Froliana Joseph, and her brother, Ndlilinasho Joseph (also called David), were arrested and subsequently granted bail. Two other suspects, believed to be in Namibia, are still at large.
The burglary only came to light in June 2022, when the former director-general of the State Security Agency, Arthur Fraser, lodged a complaint with police alleging a cover-up by Ramaphosa and his head of security, Major-General Wally Rhoode.
The burglary was never officially reported to police, and a case number was never generated.
Ramaphosa maintains that informing Rhoode of the matter was sufficient, and it that was not within his control that Rhoode never had a docket opened.
He has faced intense criticism over the presence of such a large amount of foreign currency at his farm.
Sars, the South African Reserve Bank, the Public Protector cleared the president, with an exception of independent parliamentary panel headed by retired chief justice Sandile Ngcobo.
The implications of this case are far-reaching, as it not only involves a high-profile transaction linked to the President but also underscores the rigorous scrutiny of financial transactions to ensure compliance with the law. The outcome of this case could significantly influence issues of governance, financial transparency, and the enforcement of tax laws in South Africa.