Seven years on and R9m out of pocket, businessman Jabulani Mabaso has finally been cleared of fraud charges.
|||Durban - Seven years on and R9 million out of pocket because of legal fees, businessman Jabulani Mabaso was cleared by a Pietermaritzburg High Court judge on Wednesday of all charges relating to defrauding the provincial Education Department while supplying stationery.
An elated Mabaso was all smiles and said the prosecution had been malicious. He suspected that jealous competitors had had him charged.
His company, Indiza, once employed 300 people to service the agreement with the Education Department, and when it came to an abrupt end, they were left jobless.
“They have been the most affected,” he added.
When he found out in February that nobody from the department would be called to testify, he had been concerned he would not be able to challenge the accusations.
With the case spanning years and costing millions, the State had abused “our tax money”, he said.
R2 million, according to him, had been spent on a financial report by the State which was not used in court.
Mabaso’s assets, worth R60m, including shares in the five-star Fairways Golf Lodge in Mount Edgecombe, were still under restraint as they were believed to have been acquired through the proceeds of crime. He would bring an application for their release.
It was alleged that he had put an unjustified mark-up on the price of stationery he had procured for the provincial Education Department - making a profit when he was only supposed to have received a management fee.
Mabaso was also charged with forgery. It had been alleged that Indiza had submitted two fake supporting invoices from 2005 to 2007.
In finding him not guilty, Acting Judge Kobus Booyens said that no witnesses from the department had testified. It was only on the defence’s request that a former department official, Themba Ndlovu, testified - after the State had closed its case.
Judge Booyens said it was clear, from Ndlovu’s testimony, that the agreement had “serious deficiencies and inherent contradictions”.
Ndlovu had said Mabaso was allowed to make a profit and could benefit from discounts given by suppliers when bulk stationery was bought.
After his testimony, what remained of the State’s case was based on the forged invoices in the names of Palm Stationers and African Spirit. No evidence was led on who in the department required the invoices, if the goods on the invoices had been delivered and if the prices had been challenged.
In the absence of evidence from the department about prejudice, the State suggested that Mabaso’s actions could have had “potential prejudice” to the South African Revenue Service if it found out that Palm had made undeclared sales amounting to R60m, and to the company if inferior goods had been supplied.
However, said Judge Booyens, there was no evidence that the false invoices had created problems for either of them.
sharika.regchand@inl.co.za
The Mercury