The owner of the controversial Buthelezi EMS ambulance company who reportedly benefited from a lucrative R1 billion deal with the Free State Department of Health, faces charges of tax evasion and fraud.
This matter arose from an in-depth investigation by the South African Revenue Service (Sars) after discovering the filing of false tax returns between 2014 and 2019.
Thapelo Buthelezi (43), as well as his spouse, Monica Buthelezi (41), and accountant, Nkosana Sekobane (42), appeared in the Bloemfontein Magistrates’ Court on 1 September, representing two companies managed by Buthelezi: Buthelezi EMS (Pty) Ltd and B EMS Close Corporation.
Phaladi Shuping, provincial spokesperson for the National Prosecution Authority (NPA), said that collectively they were facing 95 charges ranging from fraud to contravention of the Tax Administration Act and failure to submit company income tax. They were each granted R30 000 bail with the matter postponed to 23 February 2023.
The state alleges that they, unlawfully and with intent to defraud Sars, gave out misrepresentation to Sars between 2014 and 2019 when submitting tax returns for the companies.
Shuping said the investigations revealed the companies’ trading activities were misrepresented by claiming that the companies did not trade and submitted zero returns.
“The companies conducted business with the Free State Department of Health and were paid approximately R1 billion for rendering emergency medical services. Sars realised that the claims were fraudulent and suffered an actual prejudice of R132 million. The money was expected to be paid with their tax return, said Shuping.
According to Shuping, Sars has so far recovered around R100 million of the money in question.
“They arranged with the bank that any amount of money paid to the companies should be paid over to Sars instead,” Shuping explained.
The Buthelezi EMS stopped operating in the province late in 2018 following the promulgation in the Government Gazette for the probe into contracts controversially awarded by the provincial department of health by the Special Investigating Unit (SIU), during Dr Benny Malakoane’s tenure as MEC of Health.
The DA took the matter to public protector Busisiwe Mkhwebane on 3 July 2018 for investigation. The insolvent department had contracts for procurement with Mediosa, Halo Aviation and Buthelezi EMS for the transportation of patients. The DA lamented the controversial deal that severely financially crippled the department. During Buthelezi’s term, ambulances of the department were not fully operational and the workers were idle. The private company’s fleet of 48 ambulances billed the department R6,5 million per month, against the department’s budget of R148 million.
A similar deal was struck with the North West Department of Health.
