The SA Revenue Service confirmed on Friday it had asked Justice Minister Penuell Maduna to intervene in the controversial liquidation of the Retail Apparel Group (Rag).
Commissioner Pravin Gordhan said SARS believed it had a valid tax claim on the spoils of the Rag estate.
SARS was made aware of this by liquidator Enver Motala. Gordhan said: ”We looked into the affairs of the company and raised an assessment of R106-million, which formed the basis on which we supported Mr Motala’s application to be a liquidator in
the matter.”
Other liquidators resisted Motala’s appointment by making representations to the Master of the High Court, Gordhan said. In these they contended SARS had no claim on the Rag estate. ”We considered this unfair,” Gordhan said.
”This resistance and the refusal of the Master to appoint Mr Motala led to SARS approaching the Minister of Justice … to intervene.”
Justice deputy director-general Mike Tshishonga, former head of the Master Business Unit, earlier in the week said there was a questionable relationship between Maduna and Motala.
The business unit’s brief included the appointment of liquidators to handle insolvencies at a fee amounting to up to 10% of the value of the spoils of an estate.
Tshishonga suggested Motala sought to influence him to appoint Motala as liquidator because the minister and Motala were close friends.
Tshishonga said when he did not co-operate, Maduna intervened to appoint Motala — although he did not have the authority to do so.
Two court rulings had since confirmed that Maduna had acted outside the scope of his authority, Tshishonga said.
He said Maduna called him on January 28 this year to remove him from his post at the Master Business Unit, telling him he would be redeployed in the department. According to Tshishonga, the minister told him: ”You did not help me in the Rag matter.”
Maduna has reacted with surprise to the allegations. He said Motala’s appointment was made at the request of SARS. There had also been no need for him to intervene.
”After the first meeting of creditors, Mr Leon Lategan, an official in the Master’s Office in Pretoria, without my intervention appointed Mr Motala as provisional liquidator,” Maduna said. – Sapa