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PANDEMONIUM broke out between DA and ANC supporters at the lobby of court 13 at the Johannesburg Magistrate s Court after an ANC councillor and four of her co-accused were granted bail this week.

The ANC politician, who is a local councillor in Lenasia, south of Joburg, was arrested with six others a month ago for allegedly defrauding the SA Revenue Services of more than R90-million.

The councillor was granted R20 000 bail because, according to magistrate JP du Plessis, this was a serious offence involving a lot of money and it was a schedule five offence. Two of her co-accused were remanded in custody.

The first thing that needs to be looked at is whether there is a prima facie case against the accused. Yes there is evidence that can support the state case. You are all first offenders ... all accused the money went into their accounts the same way,” Du Plessis said.

All the accused were restricted to Gauteng and they were to hand over their travelling documents and were not allowed to apply for travelling documents like temporary passports until the end of the trial.

According to the charge sheet, the accused submitted VAT returns to SARS for the period ranging between 2009 and 2015, alleging that in conducting their business, they incurred VAT input in excess of VAT output levied and were therefore entitled to a refund.

The total amount claimed during the period 2009 and May 2015 is in excess of R120 million of which R90 million was paid out. These fraudulent VAT refunds were paid into the bank accounts of the entities. The entities were not trading or conducting any business during the period when they claimed the refunds and they were not entitled to any refunds from SARS. As the result of the accused s conduct, SARS suffered a total prejudice in the amount referred to above.

The accused and other persons, directly or indirectly involved therein, received or retained any property directly or indirectly on behalf of the enterprise and knew or ought to have known that such property was derived from a pattern of racketeering activity, by allowing fraudulently obtained VAT refunds to be deposited into the bank accounts and paying it into various bank accounts belonging to members of the enterprise,” read the charge sheet.

The case will resume on 5 June 2015.