1 month ago
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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.
SARB bank spokesperson Thoraya Pandy said she wouldn't comment about the specifics of the Drip case.
"But our policy states that once we have made a decision for a company to forfeit money to the state and it's gazetted, that means the finding is concluded and final. Our decision can be challenged via courts and litigation,” said Pandy.
In June last year, Sehoana said the company's clothing shop under the Drip Group, Kiddies Republic, was closing down and a liquidation process was underway. Sehoana said Kiddies Republic was not financially viable.
In January, WideOpen Platform filed papers in the South Gauteng High Court seeking an order to wind up Drip Footwear, saying the company was insolvent and unable to service its debts of over R20m for advertising space.
Sehoana's personal life and marriage to his estranged wife Lebogang have also been thrust into the spotlight recently.
Maile said he was not fazed by being linked to Sehoana.
“I'm not part of his business. I'm just dealing with the issue that has to do with exchange controls and the money due to him. I'm not involved with other issues associated with the personal life of the owner of the company. I'm interested in building businesses. I can't keep quiet. I earn a salary and I have nothing to gain from this,” said Maile.
