Two in court for R45m police face mask tender
A businesswoman and a tax practitioner appeared in the Pretoria Specialised Commercial Crimes Court on Thursday facing charges of fraud relating to a R45 million Covid-19 tender.
Director of PSR Solutions Suzan Pheladi Raphela (32), and director of SA Business Accountant and Associates, Sibusiso Sanele Mhlongo (29) also face charges of non-registration of VAT, tax evasion, and six counts of non-submission of tax returns.
The two, including their companies, allegedly defrauded the South African Revenue Service of R10 million in tax.
The company PSR Solutions, which stands for Suzan Pheladi Raphela, was awarded a R45 million PPE tender in April 2020 to supply the South African Police Service with face masks charged at R30 per face mask in April 2020.
Between the period of April and July Raphela had deposited more than R1 million into her account with additional 61 payments, including a R2,2 million purchase of a property in Mooikloof, Pretoria, luxury vehicles worth over R1.2 million, and two logistics trucks worth R 2,5 million.
Gauteng NPA spokesperson Lumka Mhanjana said at the time PSR Solutions received the tender the company allegedly was not registered as a VAT vendor.
"However, when the company eventually registered as a VAT vendor in June 2020, it failed to disclose the R45 million payment received from SAPS, and therefore did not return its tax value. The company declared the VAT amount on the R45 million after being notified by SARS of an audit being conducted.
"They fraudulently claimed R4.4 million with the assistance of SA Business Accountant and Associates, a company that completed tax returns on behalf of PSR Solutions without valid supporting documents."
The matter was postponed to 2 August.
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