Alleged Cape Town underworld boss Nafiz Modack yesterday appeared in court on charges of racketeering, fraud, money laundering, uttering and contravention of the VAT Act.

He was arrested with seven other people at various locations across the city.

NPA spokesperson Eric Ntabazalila said Modack, his mother Ruwaida, younger brother Yaseen, and SARS employee Faried van der Schyff appeared in court along with Bashier Syce, Nadia Said, Dominique McLachlan and Kulsum van der Schyff.

TimesLIVE reports that the Hawks said in a statement that the group was being charged with racketeering under the Prevention of Organised Crimes Act.

‘Most of the accused were arrested this morning while Nafiz Modack was arrested at the Bluedowns regional court where he is applying for bail on various charges including the murder of anti-gang unit detective Charl Kinnear,’ said Ntabazalila.

The group allegedly stole R46m from SARS through false VAT claims.

Ntabazalila added that prosecutors from the specialised tax unit allege that officials from the SARS criminal investigation unit were tipped off that 25 corporate entities, which were registered as VAT vendors, were e-filing claims for significant VAT refunds.

‘In some instances, SARS paid out the VAT refunds, either based on the initial VAT201 returns submitted or based on additional substantiating documentation provided. In other instances, the refunds were disallowed,’ he said.

The case was postponed to 22 November ‘for the accused to sort out legal representation and to request further particulars'.

Full TimesLIVE report