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Businessman Jailed for R3.6 Million SAPS Tender Tax Fraud
In what comes as a firm signal from the authorities, a Gauteng businessman has been handed a direct six-year prison sentence after being convicted of tax fraud tied to police tenders. The case is being hailed as a victory for efforts to clamp down on corruption in state procurement.
The man behind the tenders
Tshepo Khoza, director of Grey Apple Trading Enterprise (Pty) Ltd, was convicted on multiple charges: three counts of fraud, one of them a serious offence under Schedule 5, and a failure to register for VAT, in breach of the Tax Administration Act. Total undeclared income from 2015 to 2018 added up to about R3.6 million, money that came from contracts awarded by the South African Police Service (SAPS).
How the tenders came about
Investigations by the Investigating Directorate Against Corruption (IDAC), in collaboration with the South African Revenue Service (SARS) and other law-enforcement agencies, revealed that the contracts were linked to DNA-related work at SAPS’s Forensic Science Laboratory unit. Prosecutors say Khoza secured these contracts thanks to a family connection with a senior police official, a stark example of how nepotism can undermine fairness in public procurement.
Though his company was collecting significant revenue, Khoza falsely declared it dormant and neglected to submit tax returns accordingly.
Justice through joined-up action
According to public statements, the conviction follows a lengthy probe under the initiative known as Project Blue Lights. Both SARS Commissioner Edward Kieswetter and IDAC’s head advocate, Andrea Johnson, welcomed the outcome. They stressed that tax fraud is not a victimless crime; it drains the public purse and undermines the ability of the government to deliver essential services such as education and healthcare.
They underscored that this ruling demonstrates what can be achieved when agencies work together to restore fiscal integrity.
What this means for public procurement
This case is not just about one man or one company. It shines a spotlight on systemic vulnerabilities in how contracts are awarded, particularly in sensitive government departments like the police.
For South Africans, the R3.6 million is more than a number. It represents resources that could have gone toward under-resourced clinics, school infrastructure, or social support programmes.
The ruling also offers a public lesson: connections and influence do not protect those who choose to defraud the state.
Eyes now on the broader corruption trial
The current tax-fraud case concludes with Khoza behind bars, but the story is not over yet. The larger corruption trial, involving multiple defendants and deeper allegations around the SAPS procurement, is scheduled to resume on 22 February 2026.
There is cautious optimism that this momentum will not stall. For many South Africans, the hope is that this kind of accountability will become the norm, not the exception.
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Source: The Citizen
Featured Image: News24
