Dormant company used to increase Bosasa's costs, state capture inquiry hears
26 March 2019
The commission of inquiry into state capture on Tuesday heard how the Bosasa group, now known as Global African Operations, used a dormant company to increase its costs and to address the assessed loss of millions of rands, for tax purposes.
This was done through the use of three parties; Tax Risk Management Services (TRM), Miotto Trading and Advisory Holdings and Bosasa.
"I advised Bosasa to make use of TRM. They were concerned because its owner (Daniel Erasmus) was a well-known tax litigator. I was told to contract TRM myself to the benefit of Bosasa," former Bosasa auditor Peet Venter told the inquiry.
"TRM would then invoice Miotto (dormant company) and they would then invoice Bosasa. I would go to (former chief operations officer) (Angelo) Agrizzi and (former chief financial officer Andries) van Tonder introducing a new invoice to Bosasa, which would depend on the wording dictated to me by Mr Van Tonder," Venter said.