Former chairman of JSE-listed Square One Solutions Garth Coetser this week handed himself over to the police after finding out there was a warrant for his arrest.
Coetser was charged, along with two other people, with defrauding the taxman by submitting fake value-added tax refund claims to the value of R189 million. Payouts of R146 million were made before the scam was uncovered.
The South African Revenue Service (SARS) has been investigating 18 import and export companies for VAT fraud, and last week arrested the two other suspects.
Last Thursday, Wendy Wright, a bookkeeper, and Anton Meyer, a director of some of the companies allegedly involved, were arrested as a result of the investigation. The two were charged with fraud and corruption, and appeared in the Johannesburg Magistrate's Court for a bail hearing on Friday. Wright was granted bail of R19 000, while Meyer was released on bail of R50 000.
Kobus Swart, of Schwarz-North Inc Attorneys, says he assisted Coetser to hand himself over to the police this week. Coetser, a diabetic, is currently under police guard at a hospital.
Coetser, who was one of the founding members of Square One, resigned as chairman of the listed company on Monday. He was appointed as non-executive chairman in December 1999. Square One did not provide reasons for his resignation. Meyer is also a former Square One director, but stepped down in 2007.
Not us
This morning, Square One issued a statement, distancing itself from the SARS investigation. The company states: “No Square One Group companies are implicated on the charge sheet presented to Coetser and other parties.”
The JSE-listed company adds that it has not formally had sight of the charge sheet. “Our understanding is that if any of the group companies were implicated in any way in this matter, the authorities would have served appropriate documentation on the group or affected entities.”
Coetser is listed at the Companies and Intellectual Properties Registration Office as being a director of more than 100 companies. Among these is an entity called Square One Power. Square One Solutions says this unit was spun out of the listed entity in 2007.
“To the extent that there may be other entities on the charge sheet with a Square One name on the charge, we at this time wish to distance the group from the regrettable allegations against our former chairman, as well as any such entities and reiterate that no group companies are implicated in this unfortunate process that is unfolding,” the listed company says.
Millions in fraud
SARS says in a statement that two unnamed suspects, who have since been named as Meyer and Wright after being charged, were arrested in Randburg for their involvement in VAT fraud amounting to R189 million.
They were arrested following a search and seizure operation that was carried out on two business premises in Randburg.
False SARS stamps and documents were found on the premises. Further search and seizure activities were carried out on residential properties in Parktown North and Morningside linked to the operation, says SARS.
The revenue service explains that one of the suspects is a director of several companies which were used to defraud SARS, while the other is an accountant employed by the businesses.
Coetser is due to appear for a bail application on Monday, if he is declared fit to appear in court. The other two suspects are set to appear in court again at the end of June.
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