SARS, SAPS bust suspected illegal ethanol operation in Kempton Park

The South African Revenue Service (SARS), in partnership with the South African Police Service's Directorate for Priority Crime Investigation (DPCI), has dismantled a suspected illicit alcohol operation during a raid at a warehouse in Kempton Park, Gauteng.

The intelligence-driven operation, conducted on Wednesday, 29 July, targeted a storage facility where imported ethanol with an alcohol content of 96% was allegedly being illegally off-loaded. Authorities said the shipment had originally been declared as goods in transit destined for another African country but was instead diverted to an unlicensed and unregistered warehouse in South Africa.

Investigators seized one consignment containing approximately 26,000 litres of ethanol, the primary ingredient used in the manufacture of alcoholic beverages. SARS estimated that excise duties and taxes owed on the shipment alone amounted to about R9.1 million.

Officials also discovered the ethanol being transferred into 1,000-litre storage containers. Additional storage tanks and flow bins found on the premises are suspected to contain a further 28,000 litres of ethanol, with samples taken for testing.

SARS said the operation forms part of its intensified campaign against the illicit economy, particularly illegal alcohol production and smuggling. Authorities warned that criminal syndicates exploit customs and tax loopholes to evade excise duties, depriving the state of billions of rands in revenue each year while undermining legitimate businesses.

Beyond the financial impact, SARS highlighted the dangers posed by illicit alcohol, noting that unregulated products may expose consumers to serious health risks due to poor quality standards.

SARS Commissioner Dr Johnstone Makhubu welcomed the success of the operation, saying it demonstrates government's determination to combat customs fraud, excise-duty evasion and organised illicit trade.

"The illicit alcohol trade is not a victimless crime. It deprives South Africa of vital revenue needed to fund public services, damages law-abiding businesses and enriches criminal networks," Makhubu said.

He added that the successful operation reflected the strength of collaboration between SARS, SAPS and other government agencies, warning that authorities would continue to strengthen intelligence and enforcement efforts to identify, disrupt and dismantle illicit trade networks.

SARS reiterated that those involved in customs fraud, alcohol smuggling and tax evasion would be pursued and held accountable as part of its ongoing efforts to make non-compliance increasingly difficult and costly.