Two tenderpreneurs and their companies face charges relating to fraud and tax evasion.
Katleho Ignatius Motaung (28) and Tshepiso Gift Magashule (39), together with their companies Le Di Phaka Phaka (pty) LTD and Motheko Projects (pty) LTD, appeared separately in the Bloemfontein Magistrate’s Court on Friday (25/02).
Tshepiso is the son of former Free State Premier Ace Magashule and Katleho is the son of well-known radio personality Thuso Motaung.
Phaladi Shuping, provincial spokesperson for the Director of Public Prosecutions, said Tshepiso and Katleho, who are the directors of their companies, were released on warning, with their next appearance on 22 April. Charges emanate from the alleged false submission in tax returns between April 2020 and February 2021.
According to Shuping, they submitted to Sars that their respective companies did not trade during the period in question.
The companies were among 137 bidders for a three-year tender for the supply and delivery of Covid-19 personal protective equipment (PPE) to the Free State Department of Social Development last year. They were also among 94 bidders for decontamination and deep cleaning for the department in question.
It is alleged that Katleho submitted tax returns on behalf of Le Di Phaka Phaka between April and December 2020, misrepresenting trading activities. According to findings, Katleho’s company was supposed to pay tax of almost R254 000 from the company’s income of the R1,9 million deal of three contracts for PPE.
“He submitted zero returns as if the company did not trade during that period.”
Tshepiso and his company, together with his accountant, Makhosi Johannes Tshabalala (32), allegedly submitted the false tax return. It is alleged that between April 2020 and February 2021 Tshabalala submitted, on behalf of the company, VAT returns reflecting zero income, whereas the company was awarded five PPE contracts worth R7,4 million. The company was supposed to pay VAT of R437 000 from the income of the five contracts.
Katleho faces three counts of fraud, or alternatively contravention of the Tax Administration Act. He is set to reappear on 28 March. Tshepiso and Tshabalala face five counts of fraud, or contravention of the Tax Administration Act.
