The Gauteng High Court in Pretoria has heard that former defence and military veterans minister Nosiviwe Mapisa-Nqakula failed to declare her state-provided subsistence and travel allowances to the South African Revenue Service. Mapisa-Nqakula is facing 12 counts of corruption and one count of money laundering related to her tenure as defence minister between 2016 and 2019. She allegedly solicited R4.5m in bribes from a SANDF logistics contractor.
During cross-examination by the state, Mapisa-Nqakula confirmed that she had two main sources of income during the period: her official ministerial salary and the S&T allowance she received for international trips. The State presented a document detailing Mapisa-Nqakula’s tax returns filed between 2017 and 2020, which she confirmed was hers. The document showed that her S&T payments were never declared to Sars between 2017 and 2020.
Mapisa-Nqakula acknowledged that her tax affairs are ultimately her responsibility, but insisted that the department of defence handled these matters during her time in government. She shifted the blame to her former employer, stating that the department was responsible for reconciling her tax matters with Sars. Mapisa-Nqakula emphasized that she had never missed a year in her tax returns and had always received her S&T allowances.
State prosecutor Emile van der Merwe challenged Mapisa-Nqakula’s response, reminding her that she had already admitted tax compliance was her personal responsibility. He asked why she was now blaming the department, and Mapisa-Nqakula maintained that it was the department’s duty to report the figures on her behalf. Van der Merwe was unsatisfied with her response and asked directly whether she was blaming her employer for the non-disclosure.
Mapisa-Nqakula disclosed that besides her monthly salary and S&T allowances, she had other sources of income, including investment returns and distributions from a company called Edge Bay. She testified that she received annual payouts from Edge Bay ranging between R40,000 and R100,000, noting that the company has since been sold. Her accountant, Johan Smith, has handled her tax matters since 1995.
Mapisa-Nqakula and Smith had examined the tax documents thoroughly, but she only noticed minor errors on the document, such as how her name was spelt. Beyond that, she claimed she could not identify other discrepancies because she did not understand the technical nature of the document itself. The court heard that Mapisa-Nqakula’s tax returns were filed yearly, and she asked the state to investigate the department as to why the S&T allowances were not included.
The case against Mapisa-Nqakula continues, with the court still to hear more testimony. The former minister’s failure to declare her S&T allowances has raised questions about her tax compliance and accountability as a government official. The state will continue to present its case against Mapisa-Nqakula, who maintains her innocence.
Key points
- Former defence minister Nosiviwe Mapisa-Nqakula faces 13 counts of corruption and money laundering.
- Mapisa-Nqakula failed to declare her state-provided subsistence and travel allowances to Sars between 2017 and 2020.
- The case against Mapisa-Nqakula continues, with the court still to hear more testimony.
