Gauteng’s Hawks division made a crucial breakthrough in a sting operation that culminated in the arrest of two suspects.
Two suspects held for illegal possession of R15 million gold bars
The persons in question, Joachim Chivayo, a 33-year-old Zimbabwean national, and South African citizen Ayanda Gungwa, aged 20.
According to Hawks spokesperson Captain Lloyd Ramovha, both suspects appeared briefly in court for the illegal possession of gold and contravening the Precious Metals Act, on Wednesday, where their case was postponed for bail verification.
Careful not to expose their sources, the Hawks confirmed that Chivayo and Gungwa have been on their radar for a while after tip-offs came in suggesting the duo were illegally dealing in precious metals.
Following weeks of surveillance, a decision was made to swoop in on Chivayo and Gungwa on Tuesday.
According to Ramovha, at approximately 13:15 SAST, a team of field operatives swarmed a property in the Helderwyk Estate, a posh gated community in Brakpan.
A thorough search of the house turned up six bars of unwrought gold bars worth an estimated R15 million.
The state of the gold bars, irregular in shape, not neatly moulded or standardised like investment-grade gold bullion, suggests they were potentially smuggled from a refinery, or worse, produced by zama zamas (illegal miners).
Authorities also seized a Mercedes Benz sport utility vehicle for processing and to determine its potential links to similar open cases.
“The Gauteng Hawks remain steadfast in our commitment to uphold the law and protect our nation’s valuable resources. The diligence and coordination demonstrated by all team members in this operation are highly commendable,” Gauteng Hawks Head Brigadier Paulina Sekgobela said in a statement.
In South Africa, being in possession of unwrought gold without proper authorisation is illegal due to the need to regulate the country’s extensive gold mining industry and prevent illicit trade.
South Africa is one of the world’s largest gold producers, making it a hotspot for illegal mining and smuggling operations.
Strict regulations around unwrought gold are essential to safeguard the industry, the economy, and public safety.
Unwrought gold, in its raw or semi-processed state, is highly susceptible to illegal mining and smuggling.
Unauthorised possession often indicates that the gold may have been obtained through illegal activities, such as unlicensed mining by zama zamas.
This underground economy not only deprives the state of significant revenue in the form of taxes and royalties but also fuels organised crime syndicates that exploit workers, operate in dangerous conditions, and smuggle gold across borders.
The Precious Metals Act of South Africa requires anyone in possession of unwrought gold to have a license or permit.
This regulation ensures that the origin of the gold can be traced, reducing the risk of gold mined illegally entering legitimate markets.
The Act is a key tool in combating money laundering, tax evasion, and other forms of financial crime often associated with the illicit trade of precious metals.
Enforcement of these laws is also aimed at protecting the integrity of South Africa’s mining industry.
Illegal gold trade undermines the credibility of the country’s gold supply chain, potentially jeopardising its standing in international markets.
Buyers in these markets demand assurance that gold has been mined and traded ethically and legally, and regulatory oversight is critical to maintaining this confidence.
