Lebogang Maile says businessman and Drip sneaker company owner Lekau Sehoana asked for his help to get back his R3.6m from the SA Reserve Bank.
Yesterday, the Gauteng economic development MEC justified why he wrote to the SARB governor Lesetja Kganyago on Tuesday to plead for leniency on behalf of Drip Group which is facing losing R3.6m to the state for violating foreign exchange regulations pertaining to payment due to him two years ago.
Maile’s involvement in the matter has raised concerns in the public domain, with some people accusing him of being inappropriate and favouring Sehoana.
Maile told Sowetan yesterday that Sehoana asked for his help at the fifth anniversary of Drip sneakers brand event in Tembisa, Ekurhuleni, last month – two days after the SARB gazetted its decision to about the forfeiture of Drip Group money to the state.
“I received a briefing from the owner [Sehoana] about the challenges he was facing regarding the money he was supposed to receive overseas which was being withheld by SARB. He acquired the service of the third party and that third party did not do things properly and there were certain documents that they [third party] did not make available to SARB. This is Sehoana’s money and he can’t get it back unless he adheres to the laws regulating such transactions,” said Maile.
He said he was backing Sehoana to avoid potential job losses and to prevent his sneaker business from folding.
“All we are saying is we are pleading with the SARB to give him [Sehoana] enough time to speedily resolve the issue and try to guide him through the process instead of just being punitive. I’m not instructing the Reserve Bank, I’m just pleading,” said Maile.
Asked whether he has offered similar help for other businesses who have violated tax laws, specifically with SARB, Maile said Drip Group was the first entity to seek help from his office. His said most of his interventions were for companies that were not being paid by government departments for services they rendered.
“We receive between 20 and 30 such complaints daily but because these companies are not as prominent the media never gives them much attention…The only difference now is that the withheld money by SARB belongs to Drip and they just need to comply. What’s wrong with pleading that a small business must not be held [back] by the SARB,” said Maile.
Lindile Sifile
www.sowetanlive.co.za
