Corrupt officials, criminal syndicates fuel SA's gold trade crisis - Report

A NEW report from SwissAid has uncovered the extensive involvement of corrupt officials in the illicit trade and laundering of South Africa’s gold.

- TAWANDA KAROMBO

The report, released on Wednesday, highlights the grim reality that both criminal syndicates and complicit high-ranking officials are exacerbating the country's struggle with illegal gold exports, a trade that has turned opaque due to poor accounting of imports and exports.

Further compounding the situation is a thriving informal gold sector through illegal miners known as "Zama Zamas", dealers and buyers. This provides a fertile ground for the proliferation of illicit trade in gold which is then officially exported to destinations such as Dubai in the united Arab Emitates.

South Africa used to be one of Africa’s largest gold producers. Currently, large scale gold mining in South Africa is undertaken by companies such as Harmony Gold, with artisanal gold miners or Zama Zamas also big players in the production value chain as they enter disused mines often at a dangerous cost.