The Siyenza Group could face criminal charges for submitting tax documents not issued by the national tax authority.
The Daily Dispatch yesterday reported that the Municipal Infrastructure Support Agency (Misa) had cut ties with the company after Siyenza submitted a fraudulent tax clearance certificate for a multimillion-rand project in the Northern Cape.
The South African Revenue Services (SARS) would not comment on the specifics of the Siyenza matter, but spokesman Luther Lebelo said South African companies were governed by tax laws and were required to register for tax purposes and declare generated income accordingly.
“SARS is the only institution authorised to issue tax certificates in the republic. No tax certificates may be issued by any institutions other than SARS.
“Such certificates will be considered invalid and be subject to investigation which may lead to a criminal offence,” Lebelo said.
This comes after a Dispatch investigation exposed major discrepancies with the award of a R631-million Amathole district municipality sanitation project to the Siyenza Group.
ADM used the R119-million sanitation project in the Northern Cape as the basis to award its own tender to Siyenza according to supply chain management regulations.
The South African Local Government Association (Salga) has also advised that the law must take its course.
Salga spokeswoman Sandiswa Mahlangabeza said: “Municipalities are autonomous, therefore if service providers have misrepresented themselves by submitting fraudulent documents during the supply chain management processes, municipalities reserve the right to allow the law to take its course.”
Salga is an independent body that represents 278 municipalities. It is regarded as the voice and sole representative of local government in the country.
Mahlangabeza said all municipalities should exercise due diligence in their procurement process or face legal action.
“Municipalities should always ensure that the laws that guide their day-to-day running are adhered to. Failure to do so will expose them to litigation.”
Yesterday the Dispatch reported that the national chief of staff in the Department of Cooperative Governance and Traditional Affairs (Cogta), Dumisa Jele, confirmed that Siyenza Group’s Northern Cape sanitation project had been cancelled.
Cogta provincial legislature portfolio committee chairman Mninawa Nyusile yesterday said the new development was a serious concern. “Those monies are taxpayers’ monies. Whatever happens should be within the framework of the law.”
Nyusile said the committee had oversight over the department, which in turn supports municipalities.
“We would obviously request a report from the department as to what will be the approach of ADM after national Cogta took this decision,” he said.
DA provincial leader Athol Trollip slammed ADM for not taking action against Siyenza.
“What has transpired is what we suspected from the beginning. What worries me is that since the termination of Siyenza’s Northern Cape contract by Misa, the same actions have not been taken by the ADM or by the local government MEC ,” Trollip said.
He plans to submit questions to Xasa in the legislature on what action the department would take against Siyenza with regard to the ADM project.
Attempts to reach Xasa for comment yesterday were unsuccessful. The ADM and Siyenza Group have consistently refused to comment.
UDM MPL Max Mhlathi said: “We appreciate the stand taken by in Northern Cape to nullify the contract.
“Once the original contract has been nullified that means ADM should do the same.”
— siphem@dispatch.co.za
ADM toilet firm faces tax charge
The Daily Dispatch yesterday reported that the Municipal Infrastructure Support Agency (Misa) had cut ties with the company after Siyenza submitted a fraudulent tax clearance certificate for a multimillion-rand project in the Northern Cape.
The South African Revenue Services (SARS) would not comment on the specifics of the Siyenza matter, but spokesman Luther Lebelo said South African companies were governed by tax laws and were required to register for tax purposes and declare generated income accordingly.
“SARS is the only institution authorised to issue tax certificates in the republic. No tax certificates may be issued by any institutions other than SARS.
“Such certificates will be considered invalid and be subject to investigation which may lead to a criminal offence,” Lebelo said.
This comes after a Dispatch investigation exposed major discrepancies with the award of a R631-million Amathole district municipality sanitation project to the Siyenza Group.
ADM used the R119-million sanitation project in the Northern Cape as the basis to award its own tender to Siyenza according to supply chain management regulations.
The South African Local Government Association (Salga) has also advised that the law must take its course.
Salga spokeswoman Sandiswa Mahlangabeza said: “Municipalities are autonomous, therefore if service providers have misrepresented themselves by submitting fraudulent documents during the supply chain management processes, municipalities reserve the right to allow the law to take its course.”
Salga is an independent body that represents 278 municipalities. It is regarded as the voice and sole representative of local government in the country.
Mahlangabeza said all municipalities should exercise due diligence in their procurement process or face legal action.
“Municipalities should always ensure that the laws that guide their day-to-day running are adhered to. Failure to do so will expose them to litigation.”
Yesterday the Dispatch reported that the national chief of staff in the Department of Cooperative Governance and Traditional Affairs (Cogta), Dumisa Jele, confirmed that Siyenza Group’s Northern Cape sanitation project had been cancelled.
Cogta provincial legislature portfolio committee chairman Mninawa Nyusile yesterday said the new development was a serious concern. “Those monies are taxpayers’ monies. Whatever happens should be within the framework of the law.”
Nyusile said the committee had oversight over the department, which in turn supports municipalities.
“We would obviously request a report from the department as to what will be the approach of ADM after national Cogta took this decision,” he said.
DA provincial leader Athol Trollip slammed ADM for not taking action against Siyenza.
“What has transpired is what we suspected from the beginning. What worries me is that since the termination of Siyenza’s Northern Cape contract by Misa, the same actions have not been taken by the ADM or by the local government MEC ,” Trollip said.
He plans to submit questions to Xasa in the legislature on what action the department would take against Siyenza with regard to the ADM project.
Attempts to reach Xasa for comment yesterday were unsuccessful. The ADM and Siyenza Group have consistently refused to comment.
UDM MPL Max Mhlathi said: “We appreciate the stand taken by in Northern Cape to nullify the contract.
“Once the original contract has been nullified that means ADM should do the same.”
— siphem@dispatch.co.za
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