One of 16 accused in a pending investigation into a fraudulent asbestos tender scheme involving the Free State Department of Human Settlements (FSDHS), was dealt the first blow with a conviction for tax evasion relating to R255 million.
The Bloemfontein Magistrates’ Court sentenced Abel Khotso Manyike (41) and his company, ORI Group (Pty) Ltd, on 18 July.
Manyike’s conviction sees the state scoring another victory following favourable judgments during civil proceedings in the two senior courts X the Free State High Court and the Supreme Court of Appeal (SCA). The courts have dismissed attempts by former ANC secretary-general Ace Magashule and businessperson Edwin Sodi against the legality of the asbestos scam prosecution laid against them last year in March, and early May this year.
Manyike is set to appear with the other 15 accused in the main asbestos trial set for April 2024.
WO Fikiswa Matoti, Free State spokesperson for the Hawks, in the regional court in Bloemfontein said Manyike and his company had pleaded guilty to charges of contravention of the Tax Administration Act, failure to submit tax returns, and failure to register as a VAT vendor.
“The conviction comes after the company, as represented by its director, was subcontracted during the Free State programme for the eradication of asbestos in 2014. The company, ORI Group (Pty) Ltd, received R21 million for sub-contracting on the main tender awarded by the FSDHS,” said Matoti.
The findings revealed that Manyike’s company had not been registered and operated illegally, but nevertheless was offered business.
“The company did not submit any tax returns and was never registered for VAT,” said Matoti.
The company was found guilty on eight counts of tax evasion and sentenced to a fine of R30 000, which is wholly suspended for a period of five years.
Manyike, as director of the illegal company, was found guilty on four counts of tax evasion.
“He was sentenced to a fine of R15 000 or two years’ imprisonment, which is wholly suspended for a period of five years. He was also found guilty on 13 counts of not being registered for VAT and fined R5 000 00 or a one-year prison term, which is wholly suspended for a period of five years.”
All 16 accused in the asbestos case are charged separately in some charges and jointly in respect of other charges, with 74 counts of fraud, corruption, money laundering and various other statutory contraventions. Many of the charges relate to a contract awarded by the department in question.
The other accused are Nthimotse Mokhesi; Mahlomola John Matlakala; Blackhead Consulting (Pty) Ltd; Diamond Hill Trading 71 (Pty) Ltd, represented by Lindikhaya Mpambani; 605 Consulting Solutions (Pty) Ltd, represented by Michele Antia Mpambani; Mastertrade 232 (Pty) Ltd, represented by Sello Joseph Radebe; Thabane Wiseman Zulu; Ollie Matawane Mlamleli (former mayor of the Mangaung Metro Municipality); Nozipho Belina Molikoe; Thabiso Makepe; and Abertus Venter.
