The VAT Recovery Scandal is growing
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Volg OO op twitter: oudtshoorno en facebook: Drewan Baird
Oudtshoorn. 10 April 2012. 15h40. “Drewan, don’t communicate with me anymore. Do what you want to do until I get fed up with it, but don’t communicate with me any more.”
This from my Comrade, Major Sokopo, my party’s Regional Treasurer for the Southern Cape and Klein Karoo.
All I wanted to know – not even from Sokopo, but from Oudtshoorn’s CFO, Deon Lott, was whether Lott knew of the false VAT recovery claims that Sokopo’s company, MGT Business Enterprises, made in Ventersdorp.
Sokopo just doesn’t want to hear about it.
But OO wants to know why Lott did not stop the appointment of MGT on March 1. Lott must surely have known that MGT claimed R5m in VAT recovery in Ventersdorp and that a mere R200,000 (4%) was legitimate!
Why should Lott probably have known?
Because MGT was appointed in Ventersdorp by Lott’s Comrade, Kenny Leluma, former “political advisor” to the previous Bitou Mayor.
Although MGT received R600,000 in “fees” from the Ventersdorp Municipality, SARS now wants its money back!
The ratepayers of Ventersdorp will have to bear the cost of repayment, with fines; commission paid to MGT; and administrative expense of a double payment.
MGT claimed VAT recovery on salaries and on loan repayments to the South African Development Bank!
Major! Wow! Nice work if one can get it!
OO must confess that it is convinced that such a scam can only be effected when a SARS agent is in on the deal. How else can VAT be reclaimed only to be questioned again later by SARS!?
Apparently the scam works like this: The VAT Recovery Agents claim false overpayments from a SARS source; pocket the commission and are long gone when a SARS audit reveals the falsity and the reclaimed VAT is to be returned to SARS.
SARS may levy fines of up to 200% – to be carried by the ratepayers.
Oudtshoorn’s ratepayers will surely not stand for this kind of thievery! Will they!?
It’s time to stand up and do something to protect your pockets, my dear longsuffering readers!
As the DA indicated in its response published earlier today, they are not really concerned, what with the long weekend and OO’s irritating habit to expose maladministration by “hearsay” nogal.
The municipality of Madibeng recently received a R60m fine for false claims, remedied by the intervention of legitimate professionals.
Six companies tendered for VAT Recovery last year. MGT was not one of these companies. The tender lapsed, and Mnyimba unilaterally awarded the contract to his Comrade, Sokopo, on March 1.
Thandekile Mnyimba; Major Sokopo; Gordon April; Deon Lott… you have to explain this MGT Contract, my Comrades.
The problem is not going to go away!