An allay of Julius Malema has slammed the taxman’s judicial inquiry as a politically motivated witch-hunt, but has urged the former ANC Youth League president to co-operate.
Businessman Sello Rasethaba – whose relative Thomas was subpoenaed – said the amount of resources dedicated to the inquiry was disproportionate.
This came as Sars subpoenaed several Limpopo municipalities to bring documents and explain some of the questionable tenders, worth more than R400 million, awarded to companies associated with Malema and Limpopo premier Cassel Mathale’s allies, dating back to 2005.
Rasethaba told The Sunday Independent yesterday that the “amount of resources being put in here for one taxpayer leaves much to be desired”.
“What is the return on investment for the taxman? But let us give them the benefit of the doubt; we will see later whether this is a good investment or a politically motivated inquiry.
“These are trying times for Julius and we will urge him to co-operate with the law because he keeps on saying he has done nothing wrong,” he said.
The subpoenaed municipalities included the Capricorn district municipality and the City of Polokwane.
Fanisa Lamola, Polokwane municipal manager, confirmed yesterday that the city had been subpoenaed to the inquiry, adding she would personally attend.
“The communiqué I got from Sars is that they need information, but they were not specific. Sars is a state institution and there is no reason for us not to co-operate,” she said.
A former Polokwane municipal employee said Sars made the same tax-related inquiries regarding SGL and others in 2010.
Capricorn mayor Lawrence Mapoulo also confirmed that the municipality would be going to the inquiry, but declined to comment further.
However, an insider said Sars had summoned the Capricorn municipality to bring all documents related to tenders awarded to the 19 companies and several businessmen already subpoenaed.
The source said Mapoulo was under pressure from some officials from the municipality’s legal division who were trying to convince him to withhold crucial information to protect Malema’s allies.
“Mapoulo can’t (withhold information). Sars wants information about tenders (the municipality awarded) On-Point and SGL before he took over. They want to know what happened. But the mayor can’t agree to withhold information. For what? Just to defend comrades? No, the comradeship and the friendship would rather cease to exist,” said the source.
Malema, whose name is expected to dominate the inquiry that commenced last week, was not subpoenaed.
Seraj Ravad, an accountant for On-Point, also appeared before the inquiry. Malema’s trust partly owned On-Point.
On-Point has been effectively in charge of Limpopo road contracts worth about R3.6 billion over three years, through its R51m project management unit tender.
Ravad confirmed his appearance before Sars, but refused to divulge his submissions.
“They were just asking a few questions and I answered them. I can’t divulge what I said because it was a secret inquiry. I was just a book-keeper and do not even have power of attorney. Speak to Sars,” he said.
The Sunday Independent reported a fortnight ago that the taxman convened the inquiry after some business people and government officials refused to co-operate with it.
The order to hold the inquiry – which is expected to draw the largest number of suspects in the history of tax investigations – was granted by Deputy Judge President of the Gauteng North High Court Willem van der Merwe on March 6.
The inquiry is a judicial body set up in terms of the Income Tax Act and is headed by advocate Piet Marais SC.
Those subpoenaed have been asked to bring tender-related documents such as share register and shareholder agreements, bank and financial statements, assets registers, debtor’s books and pay slips, among others.