Juju’s rescuer seems to be a far worse rogue
Businessman in more trouble with SARS than Malema ever was
NORMAN Tloubatla, the highflying businessman who snapped up Julius Malema’s half-built mansion for R5.9-million on auction last year, now finds himself in far hotter water with the taxman than the EFF leader ever was.
Affidavits and documents show that Tloubatla, who drives a Porsche Cayenne and has a number of houses valued north of R4-million, is the mastermind of an audacious R154-million scheme to swindle tax from the SA Revenue Service (SARS) using a network of insiders.
Tloubatla, 38, had been running the scheme for years, but his big mistake was to emerge from hiding when he bid on Malema's house at the auction last year — which thrust him into the public spotlight.
This piqued SARS’ interest, and it launched a full-scale probe into his companies — Magnified Designs and Lethlabe Civils — and uncovered a vast tax racket.
Ironically, the deal for Malema’s house fell through because Tloubatla, who only paid a R1million deposit, never paid the rest for the partially built fourbedroom, four-bathroom house.
Now, documents uncovered by tax investigators show that even that R1-million came from dubious sources.
Tloubatla and his wife would ask for “tax refunds” using fraudulent documents. SARS officials who had been bribed would then pay the “tax refunds” into shell companies set up by Tloubatla.
SARS official Parbhookumar Moodley said in an affidavit that Tloubatla was the “mastermind”, who used the shell company CBK Marketing Resources as the main vehicle to extract funds from the taxman.
Altogether, Tloubatla used a labyrinth network of 33 people and the involvement of SARS insiders is likely to lead to further scrutiny of SARS, which was one of the shining beacons of the government for many years under Pravin Gordhan.
Former SARS commissioner Oupa Magashule’s resignation in disgrace last year, after allegedly promising a job to an associate of a friend, has tarnished SARS’ reputation.
Despite repeated requests for comment this week, Tloubatla’s lawyer Melatong Ramushu said his client “wishes not to respond at this stage”.
An analysis of Tloubatla’s Magnified Designs bank accounts revealed how money was diverted through a complex web of companies.
CBK Marketing received R47million in tax refunds, Brickwell got R35.4-million and Lethukukyana got R61.7-million. A day or two after SARS paid the refunds, the companies would channel the money into Magnified Designs’ bank account.
In June, a SARS field audit exposed the fact that these refunds were given in cases where no supplies, goods or services were rendered.
To make matters worse, fictitious VAT invoices were allegedly generated when the investigators asked for invoices to substantiate the claims.
SARS has apparently taken steps to deal with its staff who were involved in the scam.
Moodley said it seemed the fraudulent scheme appeared to be “the tip of the iceberg”.
To claw back some of the cash, Tloubatla's assets and those of his companies have been frozen. These include lavish cars such as a Lexus, two Porsche Cayenne, and a Land Rover, as well as buildings.
Tloubatla bought two houses in the Maroela area for more than R4-million.
Moodley said SARS would not be able to recover the bulk of the taxes that were owed to it.