Oct 21, 2021

Mawazo Writing Africa

Writing about the main

Sars targets 52 ‘non-compliant’ companies that scored R1bn in PPE and Covid-19 related contracts

The SA Revenue Service (Sars) has targeted 52 non-compliant companies that have received R1 billion in contracts for the supply of personal protective equipment (PPE) and other Covid-19-related services.

< p> Eleven companies have been convicted so far, seven cases are in court, 29 cases are with the National Prosecution Authority (NPA) for the preparation of indictments or arrest warrants, while five case files are being processed by the Hawks.

“Sars has collected REN 170 million in unpaid taxes related to PSA contracts and R500 million in assets [including cash] is subject to change. Sars is also investigating 33 companies that are associated with politically exposed persons.

“In addition, several companies that had received government tenders for Covid-19-related services totaling 50 million Rand were identified , recently convicted for failing to register for VAT.

“Companies received tenders from the Gauteng Department of Education to decontaminate and deep clean schools, and another company received one from the KwaZulu-Natal Department of Social Development Tender for the supply of hygiene equipment and consumables, “said Sars.

The companies were convicted and convicted by the Durban District Court last week, with sentences ranging from five months to ten months in prison (with the possibility of a fine) The cases follow similar convictions in Gauteng and the Free State.

Sars Commissioner Edward Kieswetter said it appeared that some companies were operating outside of the law to benefit from a devastating pandemic that has affected the lives and livelihoods of millions of South Africans, especially the poor and the vulnerable.

“Unfortunately, be most of the looted money was used to fund a lavish lifestyle, “he said.