Newsletter| Umgeni Water broke National Treasury’s rules and awarded a R220 million security tender to an ANC-linked company whose taxes were not in order at the time. Treasury forbids the awarding of tenders to companies which are not tax compliant
In December, Umgeni Water awarded the three-year tender to guard the water utility’s assets to Reshebile Aviation and Protection Services, which at the time owed the SA Revenue Service both payroll tax and VAT.Reshebile’s Sars statements for 2017/18, obtained by City Press, reveal that the company owes R2.6 million in payroll taxes and R900 000 in VAT.
The real-time database is linked to Sars’ systems and is able to immediately identify whether a company owes the taxman. The Sars documents and report raise questions about how Reshebile obtained a tax clearance certificate. Its directors include ANC veteran Gertrude Shope and former presidential bodyguard Khanyisani Mazibuko.
Asked to respond, Umgeni Water spokesperson Shami Harichunder declined to comment on specific questions, saying many of them would likely “be part of court deliberations in the impending matter between Excellerate Services and Umgeni Water” , and that the matter was “sub judice”.
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