Tax boss Tom Moyane’s nephew has scored a debt collection contract from the South African Revenue Service (Sars) that could be worth R220‑million.
Nhlamulo Ndhlela’s company, Lekgotla Outsourcing, is part of Lekgotla Trifecta Collections, a consortium that was awarded a contract to collect R2.2‑billion worth of taxpayers’ debt.
How much Lekgotla Trifecta earns will depend on how much it collects, but an industry expertsaid that its fee could be about 10%, or up to R220‑million.
A subsequent amaBhungane investigation has discovered the family relationship between Sars commissioner Moyane and Ndhlela, and that this was not disclosed to Sars’s bid adjudication committee on the mandatory conflict of interest form.
Businessperson Mabayo “Joe” Ndhlela is Moyane’s brother and Nhlamulo Ndhlela’s father. Joe Ndhlela previously held positions as an executive at Transnet and as the chief executive of the Premier Soccer League. In 2002 he was convicted of fraud relating to his time at Transnet.
Sars’s decision in October last year to hire private debt collection firms was controversial, in part because it involves handing sensitive taxpayer information to private companies.
Lekgotla Trifecta was one of only three companies or consortia selected out of 39 bidders for a slice of the initial R15‑billion debt book that Sars was offering.
While Trifecta Capital Collections appears to have substantial experience in debt collection, Lekgotla Outsourcing, which was established in 2014 as a joint venture between Ndhlela and Trifecta, appears to have no experience in the field.
Any company bidding for a contract with Sars must disclose any compromising relationships in a declaration of interest form known as an SBD4.
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