The Botswana Unified Revenue Service, BURS, is demanding P17 million in outstanding tax and interest from the P36 million which is due to be paid to Daisy Loo. BURS has already instructed the Accountant General to deduct and withhold the amount before giving Daisy Loo its paycheck, although the two government departments are disagreeing on the interpretation of the law.
Daisy Loo, on the other hand, has initiated talks with BURS proposing a payment plan; the taxman, however, is demanding the whole amount at once.
“Yes, BURS has, under terms of the Income Tax law, appointed the Accountant General its agents and instructed the office to withhold the sum of P16 919 672, 72 for purposes of tax,” Emma Peloetlhetse, the Accountant General, told the Sunday Standard in a written response to enquiries.
“In 2007 the High Court of the Republic of Botswana appointed my ministry through the office of the Accountant General a “receiver” of the proceeds of the Daisy Loo case pending the final determination of the case.”
She explained that in 2007 the high court of the Republic of Botswana “appointed my ministry through the office of the Accountant General as receiver of the proceeds of The Daisy Loo case pending the final determination of the case.”
She added that the High Court further directed that the proceeds should be deposited into an interest generating bank account.
The written response from the Accountant General indicated that upon receipt of the proceeds, the money was invested with several banks as directed by the High Court and the selection of banks was done after due procumbent processes.
“We confirm that the Ministry of Finance and Development Planning is in possession of Daisy Loo proceeds,” the statement said.
Speaking to Sunday Standard, the judicial manager, John Hinchliffe, assigned to look after the affairs of Daisy Loo, also confirmed that BURS had given them a notice that they are demanding about P17m from the cheque.
“I am not sure whether BURS has done its calculation right,” he said.
He added that they are still discussing the matter because both parties have different interpretation of the law.
“We simply want clarity on the interpretation of the law; that’s what we need,” he said.
He added that although they are still in discussion with BURS on how to settle the matter, he was optimistic something positive would come out.
When contacted for comment the public relations officers of BURS Kefilwe Mogami declined to comment.
The Department of Public Prosecutions (DPP) has indicated that it will not appeal the court decision.
The case came to a close in April this year, with Justice Lakhvinder Singh Walia setting aside both the conviction and sentencing of Frank Molebatsi, Gilbert Sithole, Frank Stegling, Daisy Loo Company, Moemedi Dijeng and Sadi Abey, who had appealed the suspended sentence by the then Regional Magistrate Barnabas Nyamadzabo for the bush clearing, tree trimming and grass cutting of the Segoditshane river bed.
Daisy Loo and its judicial manager, John Hinchliffe, through their lawyers, Mack Bahuma Attorneys immediately wrote to the Directorate of Public Prosecution Director, Leonard Sechele, demanding that the cheque be released to them. Mack Bahuma Attorneys stated that interns of the restraint order, which was granted by the Court of Appeal, the funds which is the subject of the case was to be kept in an interest bearing account under the control of the Accountant General and the DPP until finalisation of the criminal case.
“The criminal matter has been finalised and, as such, client has instructed us to demand, as we hereby do, that the funds be released to Daisy Botswana (Pty) Ltd immediately. We understand from our discussion with Mr. Wesson G Manchwe (of the DPP) that you are considering your options. Such options will include seeking leave to appeal,” the attorneys said.”The findings by the High Court are quite clear and unassailable. If you are to seek leave to appeal the decision, such will be an academic exercise, as it will not affect the findings of fact or the verdict. We are copying this letter to the Attorney General to inform her of the position. Kindly but urgently act accordingly; we await the release of the money.”
Nyamadzabo had sentenced the accused persons to 18 months imprisonment, wholly suspended for three years for offences ranging from conspiracy to defrauding, obtaining by false pretences and giving false information.
