‘Millions of Assumptions': Wins SARS Fraud Case, Casts Doubt on Blue Lights Trial

IOL News

6 days ago

Defence attorney Pierre du Toit successfully argued that there was no evidence of fraud, deception, or intent to mislead SARS
Image: Supplied
The State's long-standing corruption case against businessman Vimpie Phineas Manthata suffered a major blow this week when the Palm Ridge Magistrate's Court acquitted him and his co-accused in a R19 million tax fraud case that had formed a central pillar of the broader 'blue lights' procurement scandal.
The verdict, delivered by Magistrate Phindi Keswa, saw Manthata, his company Instrumentation for Traffic Law Enforcement (ITLE), and bookkeeper Judy Rose cleared of all charges related to alleged violations of the Tax Administration Act during the 2018 and 2019 tax years.
Legal experts say the State's inability to prove its SARS case beyond a reasonable doubt will now put additional pressure on the corruption trial, which has already faced years of delays, procedural blunders, and accusations of political motivation.
'The prosecution could not distinguish between clerical mistakes and criminal conduct,' Magistrate Keswa ruled.
'Assumptions and administrative discrepancies cannot be used to build a case without clear evidence of intent.'
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SARS Case Unravels
The SARS prosecution had alleged that Manthata's company manipulated its tax returns to avoid paying nearly R19 million in VAT and other obligations.
But defence attorney Pierre du Toit successfully argued that there was no evidence of fraud, deception, or intent to mislead SARS.'This case is not about millions of rands, it is about millions of assumptions,' Du Toit told the court during closing arguments. 'The burden is on the State to prove guilt, and it has failed to do so in spectacular fashion.'
He cited landmark cases including *State versus Prinsloo* and *State versus Futche*, which require a demonstration of clear intent to commit fraud — a standard the court agreed had not been met.SARS officials admitted under cross-examination that they had no direct proof of falsified entries, and Rose testified that all bookkeeping was done using standard software and practices.
Implications for the Blue Lights Trial
The collapse of the tax case undermines the State's broader narrative in the so-called blue lights corruption case, in which Manthata, former acting national police commissioner Kgomotso Phahlane, and ten others face charges linked to the irregular procurement of emergency police equipment worth R191 million.
The State had portrayed ITLE as a central vehicle for corrupt payments, with the SARS case meant to illustrate how the company allegedly misrepresented its financial affairs. Now, with the tax fraud allegations discredited, the entire corruption case may be on shaky ground.
Last week, the same court postponed the blue lights trial yet again — this time to October 2025 — after severe criticism of the State's inability to produce a coherent charge sheet more than seven years after the case was first opened.
Growing Criticism of the Prosecution
Magistrate Ashika Ramalal lambasted the prosecution's handling of the case, saying the delays and repeated administrative errors were unacceptable. Still, she ruled that the trial would go ahead next year, warning that no further postponements would be tolerated.
Defence attorneys argued that their clients had suffered severe prejudice and that the continued delays were violating their right to a fair and timely trial. Accused number 9 was even left without legal representation at one point, prompting the State to suggest separating the charges — a proposal strongly opposed by the defence.
The situation has been further complicated by the State's repeated failure to serve Phahlane properly and controversy over the dropping and reinstatement of charges against Manthata, a move legal observers say sets a dangerous precedent.
But with one major case already dismissed and serious doubts now hanging over the remaining charges, many are questioning whether the blue lights corruption trial will ever result in a conviction, or if it is yet another politically entangled case destined to collapse under the weight of its mismanagement.