How the Mpisanes dodged tax

2011-07-16 17:18

Durban - A bookkeeper has testified how he defrauded the SA Revenue Service (Sars) of almost R1m in one year on behalf of Zikhulise Cleaning, Maintenance and Transport company under the instruction of owners Shawn and her husband Sbu Mpisane.

"She told me that my job was to save her money, not give it away to Sars,” was the confession of the Mpisanes’ bookkeeper Kishal Reddy at the Durban Magistrate’s Court on Friday.

Magistrate A van Vuuren cited Reddy’s “personal circumstances and the fact the he assisted police investigations against Shawn Mpisane” in imposing a lenient fine of R30 000 or six months’ imprisonment.

Reddy in his statement admitted to knowingly and willingly forging income statements and not disclosing funds to Sars.

“After serving my articles with SAB and T incorporated, Shawn offered me a job.

'In too deep'

“I was earning R6 000 at SAB and T when my wife was diagnosed with pulmonary hypertension. Doctors gave her a year to live.

“Shawn asked me what my desired salary was and I requested R40 000 a month, which would have assisted immensely with my wife’s medical bills, but I settled for R30 000,” said Reddy.

He said that after a month or so his role became clear and although he didn’t benefit financially from the fraud, he was already “in too deep”.

“A friend of mine, Preshan Ramdutt, was able to print the fake income statements since he was involved in graphics and design and his dad owned Art Printers in Nandi Drive.

“Preshan needed some convincing and eventually agreed to print the statement at R165 a copy. Shawn made an initial payment of R10 000 to Preshan and so the relationship grew,” he disclosed.

Reddy agreed to testify against the Mpisanes and assist Sars and Hawks with the ongoing investigation.


Earlier this week, over 500 supporters, apparently employees at Zikhulise Cleaning, Maintenance and Transport, toyi-toyied outside the court before proceedings started, in support of their employer, who they say is innocent.

The hearing was interrupted regularly by Mpisane’s supporters entering the room while the case was in progress.

Mpisane is out on bail of R50 000 after she handed herself over to the police when Sars and the Hawks raided her upmarket Durban home.

According to the charge sheet, Mpisane is accused of unlawfully and falsely misrepresenting submissions on her VAT 201 returns with intent to defraud.

The amount involved is around R2.5m, the court heard.

The court was told that she has a previous tax-related conviction.

Lavish lifestyle

The couple are known for their fleet of expensive cars - including a Rolls Royce Phantom and Lamborghinis - and the lavish parties that celebrities and politicians flocked to.

In March last year, Sars seized three vehicles worth nearly R17m belonging to the couple to cover unpaid taxes.

The couple voluntarily handed over some of their moveable assets last year as surety and pledged to pay Sars over a few months.

In 2009 it was reported that the couple had received R219m from the eThekwini Municipality to build low-income houses on 4?500 sites in Umlazi.

The National Home Builders’ Registration Council found defects in more than 1 000 of the 3 000 houses built by Zikhulise Cleaning, Maintenance and Transport.

Of the defects, 30% were serious and would require major renovations.

Last week charges of intimidation were dropped against Sbu Mpisane and he apologised to Mercury news editor Philani Makhanya for threatening him during a heated conversation.

  • Macho Mike - 2011-07-16 17:40

    Eish, thanks to the fraudent Mpisanes, poor people who need basic services like water, education and housing have been robbed. Hau, in SA today their are many such robbers,lead by the ANC's elite. Suffer you poor people, suffer, for your brothers and sisters they do rob you blind, even though you did vote for them.

      p123 - 2011-07-16 18:10

      Hopefully Malema next!!! Screw the ANC!!!

      Mr D - 2011-07-16 18:30

      Marcho, It's in THEM to rob each other. It happens in the smokkelhuis in the trains and even in the hospitals. It's not just the rich ANC bigshots thats stealing from the poor, the poor is doing it to the poor. THEY are breed like that.

      R.Suppards - 2011-07-16 21:05

      Let's hope all involved die of leprosy.

      Raymond - 2011-07-16 21:19

      @Macho Mike,This is normal news,we read and see it daily. Fraud,theft,raping,murdering and stealing has become a South Afican culture,in fact,it's an epidemic.Yes,as for the poor,they will suffer and continue to live in mud,sludge and S**t but,they will continue to vote just to get a free yellow T-shirt and KFC Street Wise Two.Does anyone know where South Afica ranks as a fraudulent society.

      cliffarc - 2011-07-16 21:34

      - @ p123 - Yep, was thinking the same thing - Wonder how his tax affairs are going. Guaranteed he's not registered yet, nor paying a cent in taxes. It's amazing and sickening that all fixed property sales in this country are run past SARS for tax compliance,before transfer can take place , yet they ignore the tax affairs of all the recipients of govt. tenders and contracts.More Anc double standards at work.

      Azizi - 2011-07-17 00:31

      Mr D sorry what does the 'D' stand for??

      Snoopy88 - 2011-07-17 13:51

      What I don't get is the blindly loyal employees toy-toying outside the court... Do they not get that these disgustingly corrupt individuals are stealing the bread out of their children's mouths? South Africans in general need to be educated on morality and why corruption is a crime against all of us and not just 'good business'. The ANC is doing a great job of keeping people ignorant and eneducated.. so that they don't see how they are being played.

      BigD - 2011-07-17 15:23

      @ azizi. "D" stands for darkie

  • Eric West - 2011-07-16 17:44

    I wonder how much that shyster Mike Shitcliff received from the R219m housing deal?

      Slapper - 2011-07-16 17:49

      I will guarantee that he did not miss out on his cut.

  • MrSpiderman - 2011-07-16 17:52

    Let me guess? Just like minima, they declared that they earn R 20,000 per month? And the government believed it!? Eish!!

      Azizi - 2011-07-16 18:03

      Obviously you haven't dealt with SARS outside PAYE before.

      MrSpiderman - 2011-07-16 19:40

      Yip, but learning quick....

      Raymond - 2011-07-16 21:32

      I think that he meant per day.Minima,or better known as Jonny de Brain,does'nt know how many days there are in a month,so he rather took his daily allownce as R20,000.And the government believed it? Some people are selective in what they believe or hear,whichever suits them.

      BigD - 2011-07-17 15:24

      @azizi. Please explain to all of please.

  • coconuts - 2011-07-16 18:12

    Is there any investigation on how she was awarded the tender seeing who her father was?

  • Cat Woman - 2011-07-16 18:35

    What does one say? It just does not seize to amaze me any more of lately. I am sure the every one shall have their day in judgement.

      nzs - 2011-07-17 01:11

      cease (not seize) Ms Cat Mews.

      Jaco - 2011-07-17 11:16

      Captainmorgan, I've a feeling you suck even worse in YOUR second language. Why else would you feel such a need to post such vitriol to someone who did you no harm, Mr. Keyboard Commando?

      Captainmorgan - 2011-07-17 11:46

      Djissie Djaco!!!! "Vitriol" djy is soe slim met sukke groet woerde ne!!Ek dink nog stids haar Inguls suck en djy oek!!

  • Liberty - 2011-07-16 18:35

    Why do these building contractors always receive the cash up front? First build the houses to the client's specifications then get paid. Shoddy houses - no payment till it's fixed

      Captainmorgan - 2011-07-17 07:36

      Simple , the contractors establish themselves one week before work begins and they have ZERO capital . Not even enough to buy a wheelbarrow & a bag of cement. They go into the contract planning to defraud the system , make a killing then evaporate into thin air.Why does the Gov not use well established contractors (Murray & Roberts are one of many), the answer is again simple , want ny boetie issi een van die eienaars , en ek gaan niks daaruit maaki!!!

  • Cheryl Muir - 2011-07-16 20:03


      SimonP - 2011-07-16 20:10

      And what about the 1500 they didnt even build? Paid R219m to build 4500 homes, 1500 not built plus 1000 faulty. Scandalous tenderpreneurship at its worst. Who granted the tender, they should also be on trial.

      Raymond - 2011-07-16 21:41

      Another Great South African Success Story.The Story has now become a Manuscript.The house are so small,that you have to go outside if want to change your mind.Remember-'BIRDS OF A FEATHER,FLOCK TOGETHER'. @apie-there are more people on Social Welfare Grants than there people paying tax.

  • Cheryl Muir - 2011-07-16 20:20

    bheki cele, jacob zuma , Mpisane family,....... lets as the public make a long long list of all the suspects, follow each investigation and ensure that justice is served....

  • Donovan Jackson - 2011-07-16 22:29

    Classic. They don't want to 'give away money to SARS' which is exactly from whence their ill-gotten gains (and your tax money) flows.

  • Spartan1982 - 2011-07-16 22:57

    Does Malema's name have to pop up in every article even though the article doesnt even mention his name? Some people really need to do research. You cant just say Malema doesnt pay tax. Have any of you seen his payslip or looked at Sars records? Maybe he is benefitting from tenders, fact is he still pays tax.

      cliffarc - 2011-07-17 00:49

      - And what are your facts based on ? By the way,we're not talking about the VAT he pays on his JW Blue Label . Would love to know how you get the privy on malemas tax affairs.

      cliffarc - 2011-07-17 12:01

      - Malemas declared monthly income R25,000. News24 press release; DA calls for tax investigation, following reports that he's building a R16,0m mansion in Sandton.Not even Malema would qualify for a bond of such magnitude on his stated income. And yet there are some who believe the man's tax affairs are legitimate. Laughable. So who's the dickhead now ?

  • Bluemas - 2011-07-17 01:00


      BigD - 2011-07-17 15:27

      hey bra blue... To be an anc member all you need is a free tee shirt and 2 pieces of polony to buy your vote.

  • Corry - 2011-07-17 01:38

    Jeez, what is it with Indians and short life expectancy with HT? And here I thought Schabir Shaik was faking it. Now this guys wife also has "terminal" HT. Must be true then. Sorry for ever doubting you Shaik.

  • Deeteem - 2011-07-17 06:27

    When will the "sheeple" learn that there is absolutely no future with the anc !!

  • stephen roodt - 2011-07-17 06:38

    Its nice to pay fines with other peoples money

  • AJ - 2011-07-17 07:28

    How the hell would 500 toyi-toying workers know their boss is innocent? I am assuming not all come from a taxation/finance background, so let's be honest, as much as they would hate people stealing from the public coffers, they are happy to change their tune when it's their employer in the firing line..

  • paypalawsuit - 2011-07-17 07:42

    Can someone explain to "employees at Zikhulise Cleaning, Maintenance and Transport, toyi-toyied outside the court before proceedings started" He is stealing from them.

  • Vince.York - 2011-07-17 08:19

    Herein lies the core of CORRUPTION and the "general attitude to connivery" Zuma and Mbeki surrounded thimselves and all in their descending hierarchy with - each one (Cele only one of the latest) passing a (to them) 'slight' illegal and unethical and immoral action or instruction MAKING THEM ALL OUTRIGHT COMMON THIEVES. And those victims (voting citizens) of this CONTINUE TO SUPPORT AND VOTE for them?

  • Ho - 2011-07-17 10:18

    This is the way of Africa....theft, fraud, corruption,plunder...its'endemic

  • CraigColinRoyMcLeod - 2011-07-17 11:25

    It is racist, to expect people to pay tax on gravy from the gravy train. This white tendency of expecting people to behave like civilised members of society is not acceptable in the New ANC vision. The poor must stay poor and be labourers, they must not expect more from life. These the rules of the ANC South Africa. Oops sorry I think I temporarily channelled Julius.

  • calvito - 2011-07-17 12:25

    @Azizi about Mr.D.Good one!But now that you questioned it may that name is gonna change.

  • DW - 2011-07-17 14:14

    I dont get it. This woman has a previous conviction of tax fraud. They live an obscenely wealthy lifestyle. They have built homes which are effectively falling down and are using this money which was meant to house the poor (paid for by taxpayers) to live like royalty. They use and abuse people like they are their own personal slaves. And still they have 500 supporters who pitch up in court. Do they not get it? These are CROOKS who have stolen from YOU! Why do you still back them?

  • franssmith100 - 2011-07-17 19:27

    the wonderfull new south africa...LOL

  • Mike - 2011-11-24 11:47

    And the gravy train keeps rolling and rolling and rolling - and where did all this "wealth" come from - with support from the African National Corruption.

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