Customs fraud case postponed to 2019

THE nine people so far charged in a massive customs fraud case involving several Chinese-owned businesses trading in Namibia will have to return to court in January next year to give their pleas to the charges they are facing.

With eight of the nine accused making their latest appearance in the Windhoek Magistrate’s Court on Friday, they were informed that they must be back in court on 25 January 2019, and that they would then be asked to plead to the charges against them.

During the court appearance on Friday, public prosecutor Hans Thourob told magistrate Vanessa Stanley that the investigation of the matter was nearly completed, with only some minor issues outstanding, and that these would be resolved by January.

The accused are facing charges of fraud and money laundering at this stage.

The charges are based on allegations that Chinese-owned businesses based mostly at Oshikango used false or manipulated import documentation to send about N$3,5 billion out of Namibia – mostly to China – through the bank accounts of two companies of Walvis Bay-based businessman Laurensius Julius from 2013 to the end of February 2016.

It is also alleged that the accused under-declared the value of goods imported into Namibia to the customs authorities to evade the payment of customs duties.

A forensic accountant involved in the investigation of the matter has stated in an affidavit filed at the Windhoek High Court that there were material differences between invoices presented to Namibia’s customs authorities for the calculation and payment of customs duties on goods imported with the help of Julius’ companies, and invoices submitted to Nedbank Namibia to have payments made to the suppliers of the goods.

The accountant also stated that it appeared the value of goods imported into Namibia had been under-declared, or there was a significant overpayment to foreign suppliers, which was a sign that capital flight out of Namibia had been taking place.

One of the accused charged in the matter, Chinese citizen Huang Jinrong, was again not present in court on Friday. A warrant for his arrest was issued in August last year, when he first failed to appear in court as scheduled.

Huang, who was arrested in December 2016, was released on bail of N$1,5 million in January last year. With Huang remaining a fugitive from justice in Namibia, his bail deposit of N$1,5 million was declared forfeited to the state in August last year.

Another of the accused, Zhu Honggang, died in China in March last year, the court was informed previously. Zhu had been free on bail of N$500 000 since December 2016.

The eight accused who were present in the dock on Friday are Julius, Chinese businessmen Huang Yuequan (‘Jack Huang’), Tao Huizhong, and Gao Zhihua, and four Chinese women – Li Dadi, Jia Hongying, Cao Shuhua, and Zhang Ying.

Julius, Tao and Gao are out of custody on bail of N$1,5 million each. Jack Huang was released on bail of N$1 million in February last year, while Cao and Jia are free on bail of N$500 000 each, and Li and Zhang have been released on bail of N$300 000 each.

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