Dylan Bettencourt
Kaizer Chiefs team manager Bobby Motaung has found himself in trouble with the South African Revenue Service (SARS) for failing to pay company taxes.
SARS demanded R97 million in unpaid taxes from Nthwese Investment Holding Consortium of which Motaung was a director. Motaung and his partners only managed to pay R7 million of the amount SARS demanded.
Bobby, the son of Kaizer Motaung, established Nthwese Investments and bought shares in a number of companies. In 2007, they sold the shares for R183 million.
Following payments made to creditors and shareholders, R3 million was withheld for tax – an amount that was not paid to SARS.
An amount of R8 million was reportedly paid into Kaizer’s company, Kaizer Holdings, as a loan but there were no terms of repayment.
The company’s financial statements stated that an income tax amount of R62 million was to be paid to SARS but was never paid.
SARS was granted a provisional order to liquidate the company which the Durban High Court made final in May 2018.
The liquidators said Nthwese’s directors requested that the company go into business rescue but their request was dismissed.
Motaung’s company had debt of over R110 million but the liquidators said they could only recover around R20 million, leaving the company with a deficit of R90 million.
Despite Motaung’s company evading tax and committing fraudulent payments, the amount due to SARS will be written off. This is because Nthwese’s Investments became insolvent and now cease to exist.
Motaung and his partners will likely face no repercussions for their actions.
Image source: @BusinessLIVE
