Raid on PMB firm suspected of tax evasion

2010-04-09 00:00

THE South African Revenue Service (SARS) raided the offices of Khuselani Security Company in Victoria Road yesterday morning.

Khuselani has clients in Msunduzi, Richmond and Durban Metro municipalities as well as other big businesses around the province.

In the Pietermaritzburg office, about 20 SARS investigators confiscated documents, desktop computers, laptops and chequebooks.

Company owner Mohammed Jacob, who took sole directorship in 2006, is said to be on holiday in Port Elizabeth.

His right-hand man, Talah Sujee, was handling the situation in the absence of his boss.

He and other men who appeared to be top employees, including a Mohammed Ishmail, refused to answer questions from The Witness, saying that the reporter seemed to know a lot already.

SARS spokesman Adrian Lackay confirmed the raid had taken place, but said there is not much to say at this stage.

“We carried out a search and seizure as part of an investigation against the company. The investigation is in its preliminary stage, so we can’t say much.

“Charges and arrests may follow, depending on the findings,” he said, confirming that the company does business with a number of municipalities in the province.

He said the police were only asked to oversee that the operation runs smoothly.

It is understood that the company is suspected of involvement in corruption and tax evasion.

The Witness has learnt that the new administration in Msunduzi Municipality has suspended payment of R1,8 million to the company after irregularities were allegedly found in its contract.

Msunduzi administrator Johann Mettler said all the contractors are under investigation.

He said investigations have been conducted into many contractors and that others are still to be investigated.

“Before any payment is made we request information internally to verify the services rendered to the municipality.

“If that amount due to the company is withheld then there must have been irregularities in the contract. No money will be paid without proof that services have been rendered,” said Mettler.

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