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Coetser's trial postponed yet again

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 10 Feb 2015
Garth Coetser has successfully had his bail reduced so he can appoint a legal representative.
Garth Coetser has successfully had his bail reduced so he can appoint a legal representative.

Former Square One chairman Garth Coetser and his two co-accused are set to finally have their day in court within the next four weeks to face charges of tax fraud.

The trial, which has been postponed several times, will be set down on Thursday, and Marius Oosthuizen, a senior advocate in the Specialised Tax Unit of the National Prosecuting Authority, anticipates it will finally kick off in two to four weeks.

Coetser was accused, along with Anton Meyer and Clifford Stevens, of defrauding the South African Revenue Service (SARS) of R216 million. The parties are alleged to have defrauded the revenue service by claiming fake tax refund claims to the value of R189 million. Pay-outs of R146 million were made before the scam was uncovered.

The three accused have been charged with fraud, forgery and money laundering, and are alleged to have submitted value-added tax returns seeking refunds the companies, used as part of the alleged scam, were not entitled to.

Two former Square One subsidiaries were allegedly used in a bid to defraud SARS of R23.8 million. The companies, both of which were sold off by Square One several years ago, are among a total of 18 firms that were allegedly used as vehicles to submit 198 fraudulent VAT returns between 2007 and March 2010.

Square One was liquidated towards the end of September 2010, because of its "precarious cash flow situation". Meyer is also a former Square One director, but stepped down from his position in 2007.

Long time coming

Oosthuizen notes the trial started towards the end of last month, and the accused pleaded not guilty. However, the matter was again postponed while the first state witness, Riaan Engelbrecht from SARS, was giving evidence, he says.

The matter was postponed after Coetser, on 28 January, successfully applied for his bail to be reduced from R500 000 to R100 000 so he could appoint legal representation, explains Oosthuizen. Coetser's new lawyer then asked for a six-week postponement so he can prepare, Oosthuizen adds.

Coetser, one of the founding members of the now defunct Square One, handed himself over in May 2010, after learning there was a warrant out for his arrest. He was appointed as non-executive chairman in December 1999, but stepped down shortly before his arrest.

The matter is on the roll again on Thursday, when it will be postponed for the trial to continue, says Oosthuizen. He adds the expected further trial date is unknown at the moment, but it is anticipated to be between two to four weeks from now.

At this stage, only Coetser is appointing legal representation, while Meyer and Stevens will seemingly conduct their own defence, as they stated they have no funds for legal representation, adds Oosthuizen. Last year, all three of the accused applied for legal aid, which was refused, as the legal aid board found they were not indigent, he adds.

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