Ka Ndlovu appeared at the Palm Ridge magistrate’s court in Katlehong on Tuesday alongside two other co-accused.
Creator of TV shows including Muvhango and Queen Modjadji, Duma ka Ndlovu has been granted bail of R100 000.
The filmmaker appeared at the Palm Ridge Magistrate’s Court in Katlehong on Tuesday in connection with the contravention of the Tax Administration Act.
Ka Ndlovu’s co-accused, Rodney Mutsharini and Maxwell Mloyi who are believed to be his tax practitioners, first appeared in court on Monday and remained in custody.
Ka Ndlovu was remanded in a nearby police station on Monday afternoon before his appearance on Tuesday.
The state’s allegations
The state alleges that the duo helped Ka Ndlovu make the misrepresentations to the South African Revenue Services (Sars).
The state alleged that Mutsharini submitted Ka Ndlovu’s personal income tax returns for the 2016, 2017, 2018 and 2019 assessment years.
It stated that misrepresentations that resulted in actual financial losses to Sars, totalling R19.2 million, were made in the personal income tax returns filed for the four years of assessment, notes Times Live.
In 2021, former partner at Bain & Company SA, Athol Williams in 2021 gave details to the Judicial Commission of Inquiry into Allegations of State Capture about how the consultancy firm had paid R3.6m a year to Ambrobrite, which is owned by Ka Ndlovu and musician Mandla Ka Nozulu.
These payments made Ambrobrite the second highest-paid external consultant globally for Bain.
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Connection to Bain
Bain wanted a market share of the public sector business in South Africa since it saw its positioning in the market as being weak and Bain wanted to change this landscape.
The firm actively sought to associate itself with influential politicians and public sector officials in order to gain government work.
The owners of Ambrobrite promised to use their close proximity and influence to introduce Bain to key stakeholders in the South African government, including former President Jacob Zuma and heads of state-owned entities.
In 2012 the former head of Bain in South Africa, Vittorio Massone had a first of a handful of meetings with Zuma, which Ka Ndlovu also attended.
This initial meeting related to a project called “Phoenix” which was aimed at Bain getting business in all of South Africa’s public institutions.
By 2013 concerns were raised internally within Bain’s leadership by Bain’s then-global head of marketing Wendy Miller, partner and former head of the Europe, Middle East, Africa (EMEA) region of Bain Paul Meehan and the firm’s global head of legal Stuart Min about the Ambrobrite contract, in particular, relating to the following issues:
• The non-verification by Sars of Ambrobrite’s tax clearance certificate;
• The lack of public information regarding Ambrobrite (no company website, no financial information);
• The lack of business acumen and expertise on companies’ strategic and operational issues.
Ambrobrite and Bain ostensibly ended the contract in June 2016.
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