Cases of fraud and tax evasion against two businessmen and their companies will soon be heard in the Bloemfontein Magistrate’s Court.
Following an appearance on 28 January, Lindikhaya Mpambani (43) of Diamond Hill 71 (Pty) Ltd will be back in court on 23 February.
Meanwhile Tebang Motaung (36) of Newtongate (Pty) Ltd is scheduled to appear in court on 10 March.
According to Phaladi Shuping, provincial spokesperson for the director of public prosecutions, Motaung was released on warning while Mpambani is out on R5 000 bail.
Charges of alleged tax fraud relate to the combined expenditure of R255 million by the Free State Department of Human Settlements for the replacement of asbestos roofs and by the provincial Department of Health for the supply of personal protective equipment (PPE).
The state alleges that Mpambani submitted tax returns on behalf of Diamond Hills in February 2017 in which he misrepresented the company’s trading activities.
According to Shuping, findings show that Mpambani submitted nil income tax returns to the South African Revenue Service, pretending that the company did not trade during that period. This was an alleged attempt at evading the payment of taxes.
“The company traded and received an income of R51 million for a subcontract from the asbestos project. Diamond Hills was supposed to pay tax of almost R6,3 million,” Shuping said.
Meanwhile it is alleged that Motaung misrepresented Newtongate’s trade activities between September 2020 and May 2021 by submitting value-added tax returns (VAT201 declarations) reflecting zero income. Yet, according to Shuping, the company was awarded three PPE contracts worth R6,4 million.
“The company was supposed to pay VAT amounting to R757 000 based on the income generated in that period.”
