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By Frank Maponya | Apr 09, 2010 | COMMENTS [ 0 ]

COMPANIES owned or linked to ANCYL president Julius Malema have come under heavy scrutiny after the South African Revenue Services instructed municipalities to provide information and documents relating to awarded tenders.

Sars had issued a memo to all municipalities in the country ordering them to furnish it with information and documentation, in terms of Section 74A and B of the Income Tax Act.

Sowetan has a copy of the memo. The information sought was mainly for the administration of the Income Tax Act.

Titled "Special Projects Enforcement Investigations" and signed by a Sars manager for special projects, the letter cited six companies Malema is believed to have links with.

The companies mentioned are 101 Junjus Trading, Blue Nightingale Trading 61, Ever Roaring Investment, Nkgape Mining Investment, SGL Engineering Projects, and Segwalo Consulting Engineering, trading as SGL Consulting Engineers.

The letter also seeks to get clarity on information and documentation relating to the awarding of tenders to the companies between January 2003 and March 24 this year.

"Sars requires that the information be made available on inspection date," the letter says.

While it is not clear when the letters were received, they were given 15 days to comply with the directive.

The information sought by Sars included a list of tenders awarded to the six companies, specifying among others the date the tender- bid was awarded, monetary value of the tender-bid, and what the tender-bid related to.

It also required all supporting documentation relating to the tender(s)-bid awarded, including the approved tender-bid documentation and the general conditions of contracts awarded.

"In the event that it is found that no tender(s) were awarded by the municipality to any of the six entities, please inform the SARS in writing," the letter says spokesperson Adrian Lackay yesterday confirmed that the letters, dated March 24, were sent to all municipalities but refused to divulge details thereof.

"We are obliged by the law in terms of Section 4 of the Income Tax Act to ensure that any matter between Sars and the taxpayer is protected by confidentiality so that no details of engagement with taxpayers shall be disclosed to any third party," Lackay said yesterday.

He said legal provisions say he may not discuss merits of the case until the matter appeared before the courts.


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