A South African Revenue Service (Sars) investigator threatened to arrest the wife of a state witness in the LeisureNet trial, the Cape High Court heard on Friday.
LeisureNet’s former in-house architect, Dawid Rabie, was being cross-examined by defence advocate Francois van Zyl on a statement in his evidence-in-chief that he had been put under ”severe pressure” after being arrested by the Scorpions in 2004.
Rabie, who has been promised indemnity from prosecution if he gives satisfactory testimony, said the person who made the threat to arrest his wife was Sars investigator Rory Cohen, a member of the prosecution team in the case.
When Van Zyl pointed out that Cohen was sitting in court, acting Judge Dirk Uijs interjected that Sars employees had ”every right” to be present.
Rabie earlier told the court his wife had played a role in channelling kickback payments totalling $254 000 to overseas bank accounts of LeisureNet joint chief executives Peter Gardener and Rodney Mitchell.
He said the men had ”requested” two thirds of a ”work-in-progress” payment he received from LeisureNet when the group took over his architectural firm Keystone in 1999.
In 2002, when LeisureNet was liquidated, Sars demanded taxes on his share of these payments — which represented the value of projects underway at the time of the takeover — and on his salary for the 1999/2000 tax year. This had been a total taxable income of R2,8-million.
Sars had also threatened that he would lose his house, worth R2,5-million.
Rabie said he paid in all about R140 000 to Sars, in what he believed was a full and final settlement.
”On undeclared income of R2,8-million…. A hundred and forty thousand? Are you sure of that figure?” asked Uijs.
”I’m sure of it,” replied Rabie.
”We will still lead evidence on whether this was capital or income,” said prosecutor Bruce Morrison.
”It just strikes me that I’m paying a lot more than I should pay,” commented Uijs wryly.
On trial with Gardener and Mitchell are their business associate Hans Moser, and Mitchell’s wife Suzanne.
Gardener and Mitchell face charges of fraud, money-laundering, income-tax evasion and contraventions of the Companies Act, involving R16-million.
Moser and Mrs Mitchell face money-laundering charges only.
LeisureNet, owner of the Health and Racquet Club chain of fitness gyms, had 900 000 members and 7 000 employees when it was liquidated.
Rabie’s cross-examination continues on Monday. — Sapa