“Multi-Billion Rand Tax Fraud Scandal: Business Owner Released on Bail Amidst Allegations of Massive VAT and PAYE Deception”
In a high-profile case in the Eastern Cape, Zolani Bulelani Bangani and his company, Xesibe Construction CC, have been accused of orchestrating a multi-billion rand tax fraud scheme. The alleged fraudulent activities spanned from February 2018 to May 2019 and have come to light following a joint operation between the Hawks’ Serious Commercial Crime Investigation team, the South African Revenue Services (SARS), and the National Prosecution Authority (NPA).
Bangani stands accused of submitting deceitful Value Added Tax (VAT) 201 returns on behalf of his company to SARS during the aforementioned period. Shockingly, it is alleged that these fraudulent VAT returns amounted to over R1.1 billion. Fortunately, SARS’ vigilant auditing process raised red flags, prompting them to withhold payment, thereby averting a potential financial catastrophe. The allegations further suggest that for Xesibe Construction CC to legitimately qualify for such substantial VAT returns, the company would have had to generate profits exceeding R8.8 billion.
The matter was promptly reported to the Hawks, who initiated a thorough investigation. Additionally, it has been revealed that Bangani had previously submitted fraudulent Pay As You Earn (PAYE) returns, which resulted in a potential loss exceeding R36 million. This matter is already under the scrutiny of the courts.
Investigations have unveiled that Bangani allegedly received assistance from an individual claiming to be a tax consultant employed by SARS.
Zolani Bulelani Bangani made his first court appearance in the Mthatha Specialised Commercial Court on October 6, 2023. He was subsequently released on R5000 bail, with the case remanded until December 4, 2023, for further proceedings.
Major General Mboiki Obed Ngwenya, the Provincial Head of the Hawks, has commended the collaborative efforts of law enforcement agencies in their tireless pursuit to combat financial crime. This case continues to captivate the nation’s attention as it unfolds in the legal arena.
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