A Durban businessman has been arrested in connection with an alleged customs fraud scheme that authorities say resulted in nearly R37 million in unpaid customs duties and value-added tax after a shipping container was falsely declared as carrying household goods instead of illicit cigarettes.
The Directorate for Priority Crime Investigation, commonly known as the Hawks, confirmed that officers from its Durban Serious Commercial Crime Investigation unit arrested 46-year-old Butholezwe Prosper Mhlanga on Monday following an extensive investigation into the suspected customs fraud.
According to investigators, the case dates back to 2021 when import documentation allegedly described the contents of a shipping container as clear adhesive tape and plastic cups.
Authorities claim the declaration enabled the shipment to be assessed for customs purposes based on the listed items. However, an inspection later revealed that the container allegedly contained multiple brands of illicit cigarettes rather than the declared goods.
Officials estimate the false declaration resulted in a potential loss of R36.97 million in customs duties and value-added tax (VAT).
Investigation began after suspected customs fraud
The Hawks said a fraud case was initially registered at Durban Central Police Station before being transferred to the specialised commercial crime investigation unit for further investigation.
Following the inquiry, Mhlanga was arrested and formally charged.
He appeared briefly before the Durban Magistrate’s Court on Monday, where the court granted him bail of R20,000.
The matter has been postponed until 4 September 2026 while investigators continue gathering evidence.
South African authorities have increasingly targeted customs fraud and illicit trade as part of broader efforts to protect tax revenue and disrupt organised criminal networks operating through ports and border crossings.
Separate tobacco bust highlights ongoing enforcement
In a separate incident, police in Limpopo arrested a 25-year-old Zimbabwean national during an intelligence-led operation targeting the illegal tobacco trade.
Police stopped a white Audi A4 in Polokwane and allegedly discovered illicit cigarettes with an estimated value of R35,000.
The suspect, identified as Eldrie Ngwenya, appeared before the Polokwane Magistrate’s Court on 6 July 2026 on charges relating to the possession and transportation of illicit cigarettes.
He remains in custody after the court postponed the matter until Thursday for further legal proceedings.
Police spokesperson Colonel Malesela Ledwaba said members of the Limpopo Provincial Flying Squad carried out the arrest following intelligence gathered about suspected illegal tobacco distribution.
Authorities have intensified operations against the illicit cigarette market in recent years, arguing that the illegal trade deprives the government of significant tax revenue while strengthening organised criminal syndicates involved in smuggling and other financial crimes.
Law enforcement agencies say investigations into customs fraud, illegal imports and illicit tobacco trafficking will continue as part of broader efforts to strengthen border security, improve tax compliance and dismantle criminal supply networks operating across South Africa.
Source: The Citizen