Fin24

Sars slaps firm with R136m tax bill

2012-04-29 16:03

Johannesburg - The SA Revenue Service (Sars) has slammed a controversial North West tenderpreneurship company with a whopping R136m tax bill after it uncovered that the firm had fraudulently claimed R38m in tax returns.

City Press is in possession of a R136m final letter of demand that Sars issued against Peolwane Properties.

The taxman wants Peolwane Properties to pay the money immediately or face action.

The Sars action is a sequel to the South Gauteng High Court finding that one of the company’s two shareholders, Lambert Kagisho Lobelo, was a “delinquent director” after he oversaw the fraudulent payment of R38m to his company.

The court agreed with Lobelo’s business partner, Reginald Kukama, and found that Lobelo had been guilty of “wilful misconduct, breach of trust and a gross abuse of his position as a director”.

Lobelo has appealed against the decision.

Now Kukama wants the entire bill to be footed by his partner, Lobelo, whom he says was submitting the invoices without his (Kukama’s) consent or knowledge.

Lobelo and Kukama co-own Peolwane Properties and Diphuka Constructions, and have equal stakes in each. Lobelo is director of Diphuka and ordinary shareholder of Peolwane. The roles are reversed at Peolwane.

Sowetan newspaper reported earlier this month that an auditing firm was currently conducting a forensic investigation into the controversial awarding of a multimillion rand tender to a company owned by the two men, Tau Pride, for the construction of a community health centre in Rustenburg, North West.

The R108m project in Tlhabane was due to be completed before the start of the 2010 World Cup.

The court found that between December 2010 and May 2011, Sars made two value-added tax refund payments of R22 715 909 and R39 023 656 to the banking account of Diphuka Construction Limited, which was not due to the two companies.

By paying the R39m, which was made up of fictitious tax invoices, the company in effect claimed that it had spent just more than R278m more than it had on the road projects.

Kukama’s argument before court was that though he was a 50% shareholder, Lobelo was sole director of Diphuka at the time and had authorised the payments, which were lawfully due to Peolwane, be paid into Diphuka. The money was never used for Peolwane.

Kukama had argued that Lobelo had hired tax consultancy firm Royal Alliance without his consent.

Lobelo told City Press that as far as he was concerned, Sars was still investigating the case and had not made a finding.

Sars spokesperson Adrian Lackay this week confirmed that the matter was reported to Sars.

“We view the alleged fraud as a very serious offence and further arrests may be imminent,” said Lackay.

- City Press

 

Comments
  • Gestoffle - 2012-04-29 16:33

    BEE and no business acumen in full swing.......

      Vince - 2012-04-30 09:55

      A few more of these and BEE companies will be paying for housing, fixing of the water dilemma we will be in shortly, e-toll roads etc etc etc. Oh how I love it when the fat cats get thrown off the gravy train!!!

      Christopher - 2012-04-30 10:06

      Hahaha...squirming...love it...they are turning on each other, GREAT!!Who can you trust now you fat bastards!!

      John - 2012-04-30 22:52

      @Vince: No they won't. They will probably get amnesty or something.

      Trevor - 2012-04-30 23:55

      If they are members of the ANC they will get 15 years in prison and then a presidential pardon. That is unless they are let out for being terminally ill so they can play golf first.

      Lerato - 2012-05-02 09:10

      This has got nothing to do with BEE, these are just thieving bustards and I hope they rot in jail. How I wish Sars could apply the Khayelitsha justcice system – necklace them !!!!

  • Mike Purchase - 2012-04-29 16:48

    I smell a rat.

      Koos - 2012-04-30 00:43

      It seems that these amounts must be a norm as no one raised the alarm to investigate. Wonder how many 'smaller' amounts go undetected?

  • spartanx93 - 2012-04-29 17:00

    BEE working at its best!

  • Khetha Hlophe - 2012-04-29 17:01

    I earn a little but pay my tax, when working over time for 3day the amount of the 3rd day goes straight to tax.I am glad if everyone has to pay what is due

  • Koos - 2012-04-29 17:23

    LONDON TIMES - QUOTE OF THE WEEK? Interesting point of view Affirmative Action: "South Africa is the only country in the world where affirmative action is in the favour of the majority who has complete political control. The fact that the political majority requires affirmative action to protect them against a 9% minority group is testament to a complete failure on their part to build their own wealth making structures, such that their only solution is to take it from others." Finally, a word recently coined to describe South Africa's current political situation. Ineptocracy (in-ep-toc'-ra-cy) - a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.

      Maxil - 2012-04-30 07:06

      @Koos - please link the source of that "London Times" quote? Can't? Because it doesn't exist!

      Byron - 2012-04-30 13:02

      There is no London Times quote of the week - it exists in the minds of Koos and his ilk that braai every weekend and pat themselves on the back at how superior they are - exchanging emails about london times quote of the week in an attempt to raise their extremely low self esteem and mend their fragile egos

      SaintBruce - 2012-04-30 18:59

      It's quite irrelevant as to the quote's source - it a hard truth that has no counter from the ruling party. Hey, they even UPPED the social grants by plunging the country into more debt! [Dear Pravin wants to SPEND more money than South Africa generates or earns ! Wonderful Finance Minister we have - buying votes again for the ANC with money WE, Taxpayers, will have to pay back later or our children will have to pay it!] That is the conundrum (puzzle) of "African Economics". Take, Take, Take until it is all gone. Then Blame, Blame, Blame - anyone else and finally - hold out the begging bowl - Gimme, Gimme, Gimme. Ethiopia was, in Biblical times, a very wealthy nation and has never been colonised but today is a desolate dust bowl. Why? Gross mismanagement, graft, corruption etc. etc. Koos - please find me the definition of a KLEPTOCRACY. I think it is a government of thieves aka ?

      SaintBruce - 2012-04-30 19:04

      Sipho and others having a problem with the quote, go here and read the article posted in the Times Live website: http://www.timeslive.co.za/ilive/2011/07/11/white-settlers-never-stole-any-land-from-africans It is referred to there - so that author can claim its origin.

      Koos - 2012-05-01 16:47

      This is in response to my educated friend Sipho’s response to my statement on this site. Why are you scared to engage in an intelligent and professional debate? It is easy to accuse me on the internet of all the bad things. Why do you not come up with counter arguments to the statement? By the way I am a proud SOUTH AFRICAN who contributed a lot of sweat and tears on the good infrastructure you currently enjoy and are paying my taxes without any argument. My suggestion to you is to spend your money in travelling Africa. I had an opportunity to do this and it was an eye-opener for me, we in South Africa has a lot of aggression that does not exist in the rest of this beautiful continent. I keep on asking myself the question why ????. Maybe it was because of “apartheid” or maybe your leaders in the ANC started something in the 70’s which they had no insight to predict the result of and left it to our generation to resolve. I am seeing forward to your comment on my statements. (Please keep it to the point and refrain yourselves from the normal personal attacks.)

  • Michael Holthuysen - 2012-04-29 17:26

    Another BEE success... supported by the ANC - together we can do more... steal from the people...

  • George - 2012-04-29 17:29

    How many others are there pulling the same stunts?

  • Mike Purchase - 2012-04-29 18:14

    Leka one Koos.

  • Mike Purchase - 2012-04-29 18:17

    Someone has to pay for the e toll blunder,oh and what about that other chubby brainless loud mouth who owes sars millions etc etc.

  • stefaans.blaauw - 2012-04-29 21:53

    And the government still forcess companies to become AAA+ before they can tender for government projects. BEE to Get fat tjeks, do no job, and pay no tax, what a way to build SA back to prosperity again.

  • CoronaSherona - 2012-04-30 03:44

    ...and 'they' are complaining that blacks have problems accumulating wealth. It is called WORKING FOR IT. Seems the general black population of South Africa wants everything handed to them on a plate. They get it and then they can't even maintain it. The machine won't harvest by itself, the crops won't plant themselves and if you don't maintain a country, it falls apart. 1+1=2 which is clearly something they haven't figured out yet. Please don't come warra warra in my ears because you have Zuma in power because you idiots put him there.

  • Danie - 2012-04-30 08:23

    Do they not understand modern financial record and controlls?

  • KCorsar - 2012-04-30 09:26

    This has to go further than just recovering the funds, guilty parties must be placed into curatorship and never allowed to own / run / operate a registered business again. The claims made by parties here carry no substance - if that be the case they have failed in their fiduciary duties as directors, therefore incompetent to hold the position!!

  • Ask - 2012-04-30 10:30

    This is chicken feed compared to the directors of ABSA a few days ago... see http://www.fin24.com/Economy/Directors-blow-investors-money-20120429 R1.15B now that how to do it - Broedebond style... you BEE guys have a lot to learn...

      Leon - 2012-04-30 10:58

      yes interesting ne. absa was a kurator here and messed it up big time

  • Billy - 2012-04-30 11:26

    Until the investigation has been compleated, you can't blame both partners. I also found out the hard way how easy it is for a partner to conduct fraudulent business behind your back without you finding out until too late.

  • wikus.schalkwyk - 2012-04-30 14:10

    LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • Zahir - 2012-04-30 14:54

    Are they connected to juju?

  • acsteyn - 2012-04-30 17:07

    And so the story goes on. Julius onlty R10 million? Must have connections. This "Tenderpreneurship", is it like a University degree that one studies for? What is the entrance level? Does one need a matric? Are there pre-determined numbers of entrants into this elite circle? I assume it is so exclusive it is almost entirely reserved for minority groups. Am I right. By the way which University offers this Course?

  • acsteyn - 2012-04-30 17:12

    In all seriousness: There are three agencies I have real respect for; SARS with Gordin Pravind, The Public Protector under Mrs Madonsela and The Hawks. I think once you are in their microscope you should be worried.

  • Daniel - 2012-04-30 17:15

    Google the quote from Koos...it tracks back to the London TImes, enter the quote on the search function on their website, you just cant access it if you're not a susbsciber

  • boltonbarry - 2012-04-30 19:50

    And so the mighty BEC or Black economic corruption continues

  • Carol - 2012-04-30 20:43

    Just typical of a BEE company - SARS, nail the bastards!

      Carl - 2012-04-30 23:44

      Well said Carol! GO SARS!

  • Mawande Willy Wenzell Mbudane - 2012-05-01 08:09

    Good people of da rainbow nation this is no platform to raise unjustifiable racial comments. Fact that these criminals r black doesnt mean all blacks r like them. There r lots of gud blacks as much as there r certain bad and gud white folks. when r u South Africans goin to stop being naive? Africans r generally gud pple but colonialisn, capitalist system, and apatheid has changed a lot of us. I work with a lot of businesses like the one in this article and tax evaders are not always black i assure u bt nt sayin any race is worse than the other. LETS WORK TOGETHER TO BUILD THIS WONDERFUL LAND

  • Mornay - 2012-05-01 11:31

    Now this is what I call redistribution of wealth from the fat cats to the poor. I love it.

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