South Africa has launched an investigation into a significant gold smuggling and money laundering operation recently exposed by Al Jazeera’s Investigative Unit. President Cyril Ramaphosa addressed the Parliament, stating that the investigation was in the initial “inquiry stage.” Emphasizing the preservation of the financial system’s integrity for the benefit of the economy and citizens, Ramaphosa noted that divulging specific details at this point would compromise the ongoing investigation.
The probe was prompted by Al Jazeera’s four-part series, “Gold Mafia,” which delved into the illicit activities surrounding gold smuggling and money laundering in southern Africa. The exposé revealed how a network of money launderers and gold smugglers had gained control over several South African banks by bribing key individuals. This allowed them to transfer substantial sums of illegally obtained money abroad without arousing suspicion from authorities. At the center of this operation was Mohamed Khan, commonly known as “Mo Dollars,” who played a pivotal role in orchestrating the money laundering activities in South Africa.
Paul Holden, a money laundering investigator interviewed by Al Jazeera, described Khan as a shadowy figure who held significant influence over money laundering operations in the country. One of Khan’s prominent clients was Simon Rudland, a wealthy Zimbabwean entrepreneur who owns Gold Leaf Tobacco, one of the largest tobacco companies in the region. South African revenue officials have accused Rudland of tax evasion through the sale of cigarettes on the black market.
Rudland entrusted Khan’s company, SALT Asset Management, with foreign exchange transactions on behalf of Gold Leaf Tobacco. Khan, who also owned PKSA Group, utilized a complex network of fictitious invoices, front companies, and bank accounts to launder hundreds of millions of dollars to various accounts worldwide, including Dubai, Mauritius, and Switzerland.
These fraudulent operations involved Rudland and several business partners who controlled the associated companies. To ensure the transactions went undetected within South Africa’s financial system, Khan bribed key officials at two major banks, Standard Bank and Absa, as well as at Sasfin, a bank catering to small businesses. Records obtained by Al Jazeera showed regular cash payments made to these officials. Additional documents and interviews revealed that illicit transactions were only processed when the bribed employees were present at their respective banks.
Bank compliance personnel were paid off to ensure that the paperwork from PKSA and SALT Asset Management appeared legitimate and received the necessary approvals. In the case of Sasfin, an IT department member received bribes to erase fraudulent transactions from the bank’s online system.
