N$3.5 billion syphoned out

N$3.5 billion syphoned outAn accounting firm discovered discrepancies in the operations of a local customs clearing company linked to the N$3.5 billion money-laundering case. Forensic accountant, BoN add their voices An amount of N$3.5 billion has been syphoned out of the country through the customs clearing business of Laurentius Julius, who currently stands accused of money-laundering and fraud in the high stakes case that also includes Chinese nationals.

Taking the stand last week Friday, forensic accountant and KPMG South Africa director Roy Waligori revealed worrying details involving Extreme Customs Clearing Services (XCCS) and Organised Freight both owned by Julius, and possibly 100 Chinese importers who may be in the wrong.

Waligori, together with KPMG South Africa were called in to investigate possible money-laundering by the Bank of Namibia in June 2016 while the apex bank launched an investigation into the matter in February 2016.

Speaking about the investigation, Waligori said: “the purpose of our investigation was to investigate remittances away from Namibia by clearing agents and importers. There are 30 people that we can link to these irregular activities which include the three accused. We have found N$3.5 billion that have been remitted offshore through Nedbank. As it relates to XCCS and Organised Freight, the transaction could go back as far as 2008.”

The investigation further uncovered that US$600 million in total was paid into XCCS' forex account for the period 2008 to 2016.

The investigation stemmed from remittances paid into XCCS's forex account, giving rise to possible money-laundering or capital flight on the part of the Chinese importers.

According to Waligori, there was a difference in the invoices presented to both Nedbank and customs officials in Walvis Bay. “Documentation reflected the exporters invoice was not the document used to issue payment. To our minds that required an explanation. It did not fit well with our understanding. Why is there a discrepancy? It didn't appear to be correct.”

He further revealed that the theme was consistent amongst 100 Chinese importers who had used XCCS as clearing agent.

“We considered two possibilities; one being the abuse of under-declaring, the other possibility is potential money-laundering where foreign currency has left Namibia,” said Waligori.

Waligori and his team have since gone through 1 600 transactions and are still investigating the matter.



Denying

Meanwhile, Julius has denied any wrongdoing on his part and explained that he was committed to obeying the law. Responding to questions asked by his lawyer, Louis Botes, Julius told the court that he had already informed the Ministry of Finance about possible fraud on the side of the Chinese importers who had used his customs clearing business in April 2016.

Julius informed the court he picked up irregularities during an audit conducted on his business.



No cash container

Meanwhile, the Bank of Namibia refuted allegations that an amount of N$3.5 billion was found by police in a container.

“The Bank of Namibia would like to respond to concerns emanating from media enquiries and social media posts over the past few weeks regarding the supposed N$3.5 billion found in a container in the North,” the bank said in a statement.

“This information is wrong and not supported by facts. The current court proceedings of three suspects relate to criminal charges of fraud, money-laundering and tax evasion involving trade to the value of the amount cited above. As far as can be established, the Namibian Police did not find any money hoarded by the suspects when they were arrested as is alleged.”



OGONE TLHAGE