They are investigating alleged widespread tax fraud.

A number of well-known businesses in the North, including the Punyu Group, Dirk Fruit Supplies, Fysal Fresh Produce, International Commercial and SA Duty Free are amongst those receiving attention from the Ministry of Finance.

The task force, believed to number more than 50 people, confiscated files and computers.

In some cases, the doors of businesses were closed.

The Permanent Secretary of Finance, Calle Schlettwein, is in Washington D.C.

and could not be reached for comment.

His deputy, Erica Shafuda, did not return any of several calls to her office.

Eyewitnesses described a well-organised raid in which dozens of vehicles descended unannounced on companies, among which are a large number of so-called bonded warehouses, to inform managers and staff that they were under investigation.

As far as could be established, five businesses were closed at Oshikango (the border post with Angola), six at Oshakati and four at Ondangwa.

Two independent sources, who preferred to remain anonymous, described how multi-millionaire magnate Jairus Shikale raced off in his car when confronted by the tax inspectors.

Shikale, who controls the sprawling Punyu Group, could not be reached for comment.

As with all other companies, the Punyu Group is being checked for full compliance with income and sales tax regulations, as well as compliance with Customs and Excise regulations.

At least some of the raids appeared to be linked to a similar raid at Tsumeb earlier this month when the books of two accounting practices were inspected.

The raid, which is part of an investigation into tax fraud in northern Namibia and elsewhere, is part of an ongoing exercise at the Ministry of Finances to improve revenue collection.

Some sources in the financial sector have suggested that the actual tax losses incurred during the past five years might be as high as N$2,4 billion.

The investigation, which is believed to be led by auditing firm Ernst & Young's forensic auditor Hans Hashagen, has its origin in the massive tax fraud that came to light in the wake of the collapse of the Santa Clara bonded warehouse complex, owned by Jacques Fobian, in August last year.

As a result of preliminary investigations, the Ministry of Finance commissioned forensic audits by Ernst & Young, later reportedly involving auditors KPMG as well.

The former Receiver of Revenue at Oshakati, Hans Haraseb, was suspended late last year and has faced several disciplinary hearings.

Another senior Oshakati official, Abner Dawids, was subsequently suspended and charged by the Ministry of Finance.

Tsumeb sugar magnate Kallie Gruenschloss was also charged with tax fraud, bribery and corruption as result of the investigation into Haraseb and Dawids.

He is out on bail of N$1 million on the tax fraud charges, and faces a crippling tax bill in excess of N$150 million.

Much of the alleged fraud being investigated, it has been established, is related to so-called "round-tripping", in which businessmen and officials collude to process custom forms that falsely show that goods have been exported.

The goods are then sold at a discount, as the businessmen pocket the VAT they have claimed back in the process.

Raed Hijazi, MD of International Commercial at Oshikango, yesterday insisted that his company had nothing to hide and was co-operating fully with the Ministry of Finance.

Hijazi apologised to his workers and clients "for this interruption to our business" in a statement faxed to The Namibian.

None of the principals of the other businesses could be reached by the time of going to press.

* John Grobler is a freelance journalist; 081 240 1587

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