Lerala Mine dodged paying taxes � Liquidator

Friday, November 10, 2017

Bells up: BSE and CA Sales officials at yesterday's listing of the company. Over 419 million CA Sales shares were listed on the bourse with counter trading 7. 8 million shares on debut. The share price however remained unmoved at the listing price of P 3. 45

The provisional liquidator of Lerala Diamond Mine (LDM) says he is struggling to establish the amount of money owed to creditors as the company books were in shambles and little regard was given to payment of taxes, BusinessWeek has learnt.

In a report presented to the creditors last week, provisional liquidator, Kopanang Thekiso said total liabilities of the company are P615 million, noting that as far as he has been able to establish, there are preferred and concurrent creditors only. He noted that none of the creditors’ claims have been proven at this stage.

“What is clear is that there was very little compliance to tax and other regulatory requirements,” said Thekiso. According to him, government royalties, withholding tax and PAYE (pay as you earn) were not paid over extended periods of time and that there are no records locally to establish the extent of the problem.

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