FORMER TELKOM CEO CONVICTED FOR FAILURE TO SUBMIT TAX RETURNS

The Palm Ridge Magistrates’ Court has convicted former Telkom SA SOC Ltd Group Chief Executive Officer Sipho Nkosinathi Maseko, in his representative capacity as a director of five companies, for failing to submit tax returns to the South African Revenue Service (SARS).

The companies are One Fountain Properties (Pty) Ltd, One Fountain Industries (Pty) Ltd, One Fountain Capital (Pty) Ltd, Afrifund Advisory Services (Pty) Ltd and Afrifund Investments (Pty) Ltd.

An admission-of-guilt fine of R85 000 was paid on behalf of the entities.

The matter forms part of Project Honey Badger, a government initiative led by the National Prosecuting Authority (NPA), SARS and the Directorate for Priority Crime Investigation (DPCI). The project aims to improve tax compliance by prosecuting individuals and entities that fail to meet their statutory tax obligations.

Maseko appeared in court facing 85 counts of contravening section 234(2)(d) of the Tax Administration Act 28 of 2011. The charges related to the failure to submit Pay As You Earn (PAYE), Value-Added Tax (VAT) and Corporate Income Tax (CIT) returns.

The State argued that Maseko and Sonwabo Mtshazo were directors of the five companies, which failed to submit more than 85 tax returns over several years.

State Advocate Athenkosi Mancoba argued that the failure to submit tax returns hampers SARS in fulfilling its mandate to administer tax effectively and collect revenue. The entities have since submitted all their outstanding returns, enabling SARS to assess them.

The investigation began after a case was opened in September 2025. It was not a joint investigation, and no tip-off was received.

The NPA welcomes the conviction, which reinforces the importance of complying with tax legislation and reminds taxpayers of their legal obligation to submit tax returns as required by law.

Issued by:

Magaboke Mohlatlole

NPA Communications Officer | Gauteng Division, Johannesburg