Sodi faces a tax headache as Tshwane asks Treasury to blacklist his companies.

By Lehlohonolo Lehana.

@GalloImages.

SA Revenue Service (Sars) is threatening to seize his assets of controversial businessman Edwin Sodi, if he fails to pay more than R400 million of his outstanding tax debt.

According to City Press, Sodi was given 10 business days to respond to the demand. If a payment structure is not agreed to, SARS will seek an order from the high court to render his estate executable. 

Sodi has had a string of lucrative government contracts for years across the country, which were terminated for poor performance, despite pocketing millions of rand.

His companies, NJR Projects and Blackhead Consulting were embroiled in a contentious tender to upgrade the Rooiwal Wastewater Treatment Works plantt in Hammanskraal.

Despite being awarded the tender in October 2019, the companies only managed to complete 60% of the work, costing the metro R295 million and leading to calls from Tshwane for their blacklisting by the National Treasury.

The municipality has since asked National Treasury to blacklist Sodi’s companies, NJR Projects and Blackhead Consulting.

Tshwane City Manager Johann Mettler said a blacklisting will see the two companies appear on the National Treasury’s register of restricted suppliers.

“The restriction of the suppliers in question is a clear indication that the City is serious about infrastructure development in Hammanskraal, while in observance of the rules in the ongoing investigation of the Rooiwal Waste Water Treatment Plant Project by the Special Investigating Unit and the Hawks. We will continue to give our full support to the investigating agencies.”

The city has entered into a partnership with the Development Bank of Southern Africa to secure funding to implement upgrades to Rooiwal Phase 2.

“The memorandum of understanding entered into by the two institutions details the expansion, refurbishment and upgrading of waste treatment plants, especially Rooiwal Waste Water Treatment Plant, which needs urgent attention,” said Mettler.

“Another key factor in the partnership with DBSA is its appointment as the implementing agent for the Rooiwal Project. This will address delays in the project and ensure improved quality of life for our residents.”

According to the National Treasury, for blacklisting of a company to be effected, departments and state entities are required to make such a request.

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