{"id":304295,"date":"2025-08-06T07:14:30","date_gmt":"2025-08-06T05:14:30","guid":{"rendered":"https:\/\/novanews.co.za\/bloemnewsexpress\/pre-trial-set-in-tax-fraud-arising-from-a-free-state-department-of-healths-r1-billion-tender-deal-2\/"},"modified":"2025-08-06T07:14:30","modified_gmt":"2025-08-06T05:14:30","slug":"pre-trial-set-in-tax-fraud-arising-from-a-free-state-department-of-healths-r1-billion-tender-deal-2","status":"publish","type":"post","link":"https:\/\/novanews.co.za\/bloemnewsexpress\/pre-trial-set-in-tax-fraud-arising-from-a-free-state-department-of-healths-r1-billion-tender-deal-2\/","title":{"rendered":"Pre-trial set in tax fraud arising from a Free State Department of Health’s R1 billion tender deal"},"content":{"rendered":"\n

<\/p>\n\n\n\n

BLOEMFONTEIN<\/strong>: The tax fraud case against two Buthelezi EMS ambulance companies, including the owners and accountant is set for pre-trial in the Bloemfontein Magistrates’ Court on 2 September. Three individuals fingered are the Buthelezi couple, Thapelo and Monica, as well as accountant Nkosana Sekobane. The companies are Buthelezi EMS (Pty) Ltd and B EMS Close Corporation, both managed by the couple. <\/p>\n\n\n\n

<\/p>\n\n\n\n

The matter arose from an in-depth investigation by the South African Revenue Service (Sars) after discovering the apparent filing of false tax returns between 2014 and 2019. The reported false tax pertained the Free State Department of Health<\/a>‘s lucrative R1 billion tender deal awarded the period in question. <\/p>\n\n\n\n

The case has been ongoing since 1 September 2022. It culminated in arrests and court appearances of the trio. They are currently out on bail of R30 000 each. <\/p>\n\n\n\n

In its probing, Sars discovered that the claims by Buthelezi companies were apparently fraudulent and that this had resulted in the revenue services suffering losses of R132 million. Thus far, Sars has reportedly recovered around R100 million of the money in question following an arrangement with the bank that any amount of money paid to the companies should be paid over to Sars instead.<\/p>\n\n\n\n

The National Prosecuting Authority (NPA) has stated that collectively the accused were facing 95 charges, with these ranging from fraud to contravention of the Tax Administration Act and failure to submit company income tax. Mojalefa Senokoatsane, spokesperson for the NPA in the Free State, confirmed the case was still on the court roll and that the state was ready to proceed with pre-trial conference.
<\/p>\n\n\n\n

The state alleges the accused, unlawfully and with intent to defraud Sars, caused misrepresentation between 2014 and 2019 when submitting tax returns for the companies. Prima facie evidence revealed the companies’ trading activities had been misrepresented by claiming that the companies did not trade, and submitted zero returns. <\/p>\n\n\n\n

The continuation in criminal proceedings against the Buthelezi couple, and their companies, including Sekobane, comes just months after the Special Tribunal ruling and declaring the Department of Health’s awarding of multi-million-rand tenders unlawful, unprocedural and unconstitutional. The unfavourable verdict was handed down on 5 May. <\/p>\n\n\n\n

<\/p>\n\n\n\n

The Special Investigating Unit (SIU) instituted civil proceedings to review and set aside irregular tenders, as well as the subsequent contract to the Buthelezi EMS and its associate entities. <\/p>\n\n\n\n

The department had contracts for procurement with Buthelezi EMS for the transportation of patients. The department also had a similar deal with two other companies.<\/p>\n\n\n\n

The department had paid a staggering R532 789 770,12 to four companies linked to Buthelezi, despite having no valid contracts in place. <\/p><\/blockquote><\/figure>\n\n\n\n

The payments were made as follows:<\/p>\n\n\n\n

\u2022 Buthelezi One Stop Emergency Med: <\/strong>R40,619,506.40
\u2022 Buthelezi One Stop EMS:<\/strong> R4,739,819.04
\u2022 Buthelezi EMS:<\/strong> R305,196,897.00
\u2022 B EMS<\/strong>: R182,233,548.12<\/p>\n\n\n\n

Buthelezi and associated companies have been ordered to submit audited statements for expenses incurred, income received, and profit made under the unlawful contracts. Furthermore, the tribunal ruling ordered that Buthelezi pay the legal costs of the application and the SIU’s legal representatives. The tribunal has ordered the SIU to recoup R532 million.
<\/p>\n\n\n\n


The Buthelezi EMS company stopped operating in the province late in 2018 following the promulgation in the Government Gazette for the probe into contracts controversially awarded by the provincial Department of Health by the SIU.
<\/p>\n\n\n\n

It emerged the private company’s fleet of 48 ambulances billed the provincial Department of Health R6,5 million per month, against the department’s budget of R148 million. During the Buthelezi fleet’s term, ambulances of the department were not fully operational, while the workers were left idling at their workplaces.<\/p>\n","protected":false},"excerpt":{"rendered":"

Trial set for Buthelezi EMS ambulance companies tax fraud case arising the Free State Department of Health’s R1 billion tender 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grounded, stripped minibus that belonged to the controversial Buthelezi EMS ambulance fleet, whose directors are facing charges of tax fraud in a lucrative R1 billion deal with the Free State Department of Health for transporting patients in the province. 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set in tax fraud arising from a Free State Department of Health's R1 billion tender deal | BloemNews Express<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/novanews.co.za\/bloemnewsexpress\/pre-trial-set-in-tax-fraud-arising-from-a-free-state-department-of-healths-r1-billion-tender-deal-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pre-trial set in tax fraud arising from a Free State Department of Health's R1 billion tender deal\" \/>\n<meta property=\"og:description\" content=\"Trial set for Buthelezi EMS ambulance companies tax fraud case arising the Free State Department of Health's R1 billion tender deal\" \/>\n<meta property=\"og:url\" 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