South Project

The original affidavits from the Samancor case, including statements from a union leader, a researcher, and the whistleblower in the case. Samancor, one of the largest chrome companies in the world, has been accused of siphoning millions of dollars out of South Africa through complex profit shifting schemes. At the same time, workers at the company are experiencing retrenchments, while the Employee Share Ownership Plan has failed to pay out any dividends. In 2019, the mineworkers’ union AMCU lodged a case at the Johannesburg High Court in order to reclaim these funds.

This booklet is a brief guide to understanding illicit financial flows and base erosion profit shifting in the South African context. It covers the basics of what illicit financial flows are and how they are linked to the developmental history of South Africa. It describes two case studies of mining companies accused of profit shifting in South Africa, the impacts this profit shifting has, and finally, some recommendations on actions that can be taken in order to address the issue.