Breaking News

Malema to lose all his assets

by City Press
31 January 2013 | 7147 Views
Julius Malema is about to lose all his assets, City Press stated on Thursday.

On Wednesday the taxman applied to the North Gauteng High Court to have the former ANC Youth League leader sequestrated, reports the newspaper.

Malema owes the South African Revenue Service (Sars) R16m and is "factually insolvent and in no position to make payment of his indebtedness to Sars", according to court papers.

Malema is meeting his lawyers on Thursday to decide whether to oppose the application.

If the application succeeds or is unopposed, all Malema's properties would be placed under curatorship and auctioned off to cover his debts.

This includes both his houses in Sandton and Polokwane, and a smallholding and farm outside the Limpopo capital.

The hearing is scheduled for February 27.

Malema faces 51 counts of corruption, money laundering and racketeering in a case brought by the Hawks, which is separate from the Sars investigation.

The insolvency application, supported by an affidavit of senior Sars investigator Pieter Engelbrecht, makes serious claims against Malema and about his honesty in dealing with Sars.

It reveals that Malema had offered to borrow R4m to settle his outstanding taxes until 2011, but the offer was rejected.

Engelbrecht states that Sars rejected the offer because of inconsistencies in Malema's representations to the tax authority.

"Initially (Malema) had net assets to the value of R8.5m, which was reduced to R5.6m and again further reduced to R1.4m.

"It is contended that these discrepancies are not conducive in concluding that the respondent (Malema) had indeed made a full and frank disclosure to SARS and support SARS' contention that it would be to the benefit of (Malema's) creditors to sequestrate his estate."

Engelbrecht's affidavit also reveals that R5.8m was paid by third parties to build a house for Malema in Sandton, after he knocked down the existing house on the R3.6m property.

According to Engelbrecht, Sars approached Malema in 2009 about his outstanding tax. At the time, he had not yet submitted any tax returns.

Malema's Ratanang Family Trust was also not registered for tax.

During their interaction with him, Malema allegedly provided conflicting explanations of his financial affairs.

Initially he told Sars all deposits received by him and the trust were donations from anonymous donors.

When Sars pointed out to him that not all deposits were made anonymously, Malema then said "donation" was the wrong word to use; he had received "distributions of earnings".

"Later (Malema) contended that some of the payments were exempt dividends. (Malema) further alleged that some of the receipts by the trust were not received on the trust's behalf, but for specific charitable purposes," stated Engelbrecht.

His responses did not "bear scrutiny" and Sars told him so.

Sars assessed that Malema owed them R16 131 002. In October last year, the taxman told him they were intending to assess a further R2m which didn't form part of the first assessment.

Malema filed a notice of objection and his lawyers made several representations to Sars.

The parties agreed that Malema would present a proposal to settle his tax disputes, accompanied by a "full and frank disclosure and statement of assets and liabilities".

This, according to Engelbrecht, didn't happen.

But Malema's lawyers requested a "compromise of his tax debt" in accordance with tax legislation.

This is when he offered to pay R4m for his outstanding taxes.

Sars rejected the offer and said he was not honest in his dealings with them. Engelbrecht said Malema failed to include any "indirect assets", like the smallholding owned by the trust and the farm he lives on, that is owned by Gwama Properties, to Sars.

"(Malema) is not forthright and honest relating to his financial affairs, notwithstanding numerous opportunities provided to him," Engelbrecht stated.

He said Malema used the trust, named after his son, "merely … as a conduit" and that it was "in actual fact the alter ego of (Malema)".

The trust received a "large number of deposits", the majority of which were spent on Malema's "personal expenses".

The cars Malema drives, like a Mercedes-Benz Viano, are not registered in his name, but are provided to him as "part payment for services rendered and/or the use and/or association with his name".

If appointed, a trustee "would be able to find the assets, where hidden" and "lift the corporate veil, where necessary".




Malema must notify Sars by February 18 if he intends to oppose the application.

His criminal trial is scheduled to begin on April 23.

Malema

Source: City Press

Are housemaids an evil lot?

Yes
26.09%
No
64.79%
Not sure
9.11%
801

Comments

News Updates

Email:

Latest News

Mugabe gets cold feet - President Robert Mugabe today developed cold ...

by Staff Reporter | 28 January 2015 | 1893 Views

Tamborinyoka journalistic ratiocination of Mnangagwa 'meteoric rise' b...

by Wilbert Mukori | 28 January 2015 | 1079 Views

Biti calls on Zimbabwe to engage with the West - The MDC Renewal Team ...

by Staff reporter | 28 January 2015 | 1077 Views

Pre-paid waters debate expose bankruptcy of civil society - Tendai Ca...

by Dr Qhubani Moyo | 28 January 2015 | 1024 Views

Mugabe meets French investors, clarifies indigenisation - A French bus...

by Staff reporter | 28 January 2015 | 1712 Views

Shock as couple finds underwear covered in muti - In a suspected case ...

by Danisa Masuku | 28 January 2015 | 2540 Views

3 days of horror for Nust female student - OF all the passion stories ...

by Gibson Mhaka | 28 January 2015 | 3964 Views

Mutasa survives Zanu-PF expulsion - Former Zanu-PF secretary for Admin...

by Staff reporter | 28 January 2015 | 3656 Views

Mugabe leaves for AU summit - President Robert Mugabe has left Harare ...

by Staff reporter | 28 January 2015 | 1487 Views

Zanu-PF demise is nigh

by Grace Kwinjeh | 28 January 2015 | 1604 Views

My life will never be the same again, says rape victim - inhuman and t...

by Primrose Ndlovu GORY | 28 January 2015 | 1763 Views

'I did not rape, I was pleasuring myself' - A VICTORIA Falls man who i...

by Fairness Moyana | 28 January 2015 | 2855 Views

Soccer Star takes gong to the grave, for ritual purposes

by Fungai Muderere | 28 January 2015 | 2515 Views

Mnangagwa - when stealing votes for the boss gets rewarded - The curio...

by Luke Tamborinyoka | 28 January 2015 | 3065 Views

Seek T.B. Joshua's help over Boko Haram, Botswana advises Nigeria - Me...

by Tebego Motalaote - Gabarone, Botswana | 28 January 2015 | 2186 Views

'66% of teenagers indulge in unprotected sex' - Zimbabwe needs to inte...

by Staff reporter | 28 January 2015 | 1752 Views

MDC-T youth chairperson attacked by soldier - MDC-T Chivi Central dist...

by Staff Reporter | 28 January 2015 | 1673 Views

Delays with SA permits - Zimbabweans sent away from work - Three Zimba...

by Tariro Washinyira | 28 January 2015 | 4298 Views

'I enjoyed being raped,' man says

by Staff reporter | 28 January 2015 | 8521 Views

Cop escapes jail after stealing friend's certificates

by Sibhekisipho Fayayo | 28 January 2015 | 2978 Views

Man rapes teen as friend watches

by Fairness Moyana | 28 January 2015 | 4788 Views

Mysterious snake coils, licks kids to survive - SNAKES are dangerous s...

by Nhlalwenhle Ncube | 28 January 2015 | 5616 Views

Man teams up with son, tie wife to tree

by Danisa Masuku | 28 January 2015 | 2610 Views

Mugabe not welcome in Africa

by Jera | 28 January 2015 | 4063 Views

Mutasa in another scandal

by Hebert Zharare and Paidamoyo Chipunza | 28 January 2015 | 4048 Views

'We are sick of Zanu-PF wars' - Zimbabweans say they are sick and tir...

by Staff reporter | 28 January 2015 | 2324 Views

Seremwe denies Mujuru links

by Farirai Machivenyika | 28 January 2015 | 2142 Views

Mt Darwin says no to Mugabe - Analysts say the surprising outcome of ...

by Staff reporter | 28 January 2015 | 4964 Views

Entertainment

Mugabe, Mujuru at Harare Gallery

by A.A.V. Amasi | 28 January 2015 | 3692 Views

Prof Jonathan Moyo says 'Zimbabwe to meet digitisation deadline in Jun...

by Farirai Machivenyika | 27 January 2015 | 1604 Views

DJ stabbed by lover - A MATSHOBANE suburb disk jockey (29) got more t...

by Staff reporter | 27 January 2015 | 3536 Views

Bulawayo movie Qiniso out in February - THE much anticipated movie, Qi...

by Showbiz Reporter | 26 January 2015 | 1784 Views

Where is omasiganda music now?

by Fred Zindi | 26 January 2015 | 1848 Views

Ringo billed for pre-Valentines Bash in Bulawayo

by Bongani Ndlovu | 26 January 2015 | 2862 Views

The return of Alick Macheso

by Entertainment Correspondent | 24 January 2015 | 3871 Views

Chigubhu vows to continue cracking people's ribs

by Staff Reporter | 23 January 2015 | 2547 Views
iBlog

Is Pregnancy Putting Your Sexual Life On Pause?

it is often believed that once you become pregnant there is no way that you can have sexual intercourse until that baby is born, which results in placing a strong hold on different couples sex lives. in this article we are going to focus on how yo... Read More
adoniadennis 08 December 2014 ago

Obviously, Windows Xp Has Nothing More To Offer

With no support from the manufacturer, windows xp no longer receives antivirus updates, which provoked an increase in the number of attacks on xp users. according to avast company, windows xp systems are attacked 6 times more often than the devices r... Read More
Sergey 12 June 2014 ago