The South African Revenue Services and other law enforcement authorities raided the home of businesswoman Shauwn Mkhize (nee Mpisane) again, the latest in a string of run ins between the controversial construction contractor and the taxman.
Mkhize and the taxman have had their fair share of run ins over the past two decades, with Mkhize using her protracted and complex tax affairs and litigation as a bit of a fashion show during the 2012/13 legal bout between the two. In the bouts don’t always end with Sars the victor.
The officials also reportedly raided the business properties of Mkhize, including the Royal AM’s clubhouse called the Royal Ranch in Pietermaritzburg, where they seized key documents. The raids affecting the club forced the Royal AM vs Golden Arrows KZN derby in the PSL’s Betway Premiership to kick off late on Tuesday evening.
Golden Arrows won the thrilling match 3-2, when one of the Royal AM players, Motebang Sera, was sent off for handling the ball with his hands in the box, preventing a goal.
— Lamontville Golden Arrows FC (@goldenarrowsfc1)
November 27, 2024There have been a number of bruising legal battles between Mkhize, who was previously known as Mpisane before her divorce from S’bu Mpisane five years ago, and the taxman over the years. They usually follow a familiar pattern, with the taxman accusing Mkhize or her associated businesses and family trusts, of tax evasion and concealing of assets, normally in the millions of Rands.
The latest raid on Mkhize’s mansion follows after the Durban High Court issued a preservation order and effectively gave the green light to Sars, the SA Police Service and the Directorate for Priority Crime Investigation (Hawks) to conduct a search and seizure warrant at the multimillion rand La Lucia property.
It is reported that authorities have attached a number of Mkhize’s prized assets, including her multimillion rand valued supercars, the Royal AM FC and the Shandi Trust, in a bid to recover the monies owed to the taxman.
It is understood that Sars aims to dispose of the assets in a bid to recover over R37 million in outstanding taxes owed by the businesswoman, her related businesses and family trust.
It was also reported that Mkhize’s ex-husband, Sbu Mpisane, who has his own wing on the massive property, had been watching proceedings unfold from a balcony.
The Daily News reported that law enforcement authorities swooped in in La Lucia, with more than 15 State branded Saps, Sars and Hawks vehicles, lining up outside the property as locksmiths and safe specialists entered the mansion.
Mkhize reportedly owes the taxman R37 milllion in unpaid taxes and is accused of tax evasion. Her construction company, which has accrued hundreds of millions of rands in tenders from various municipalities and the KZN provincial government since the 90s.
Mkhize shot to fame and infamy in the early 2000s when her construction company, Zikhulise, amassed a massive fortune through building thousands of low cost houses in and around the eThekwini Municipality area in Durban. Mkhize is the daughter of ANC stalwart Florence Mkhize, to whom a key building owned by the municipality, is named in commemoration of her legacy.
She is known for her extravagant and expensive fashion, owning a fleet of the most prized vehicles, including Ferraris, Rolls Royces and the like. Her son, Andile Mpisane, is often seen on social media driving the super expensive performance cars and creating content with his friends.
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Sars commissioner Edward Kieswetter said they were pleased about the events of Tuesday’s raid, warning that they were committed to upholding the integrity of the country’s robust tax system, warning that the taxman and the police would be coming for others who allegedly evaded tax laws in the construction sector.
“Sars will not waiver in executing its mandate without fear, favour, or prejudice, regardless of any persons’ standing in society. No one is above the law; it is therefore critically important that Sars acts emphatically to ensure that all meet their legal obligations.
“Today’s search-and-seizure operation must communicate an unambiguous message to all that law-enforcement agencies will act to stop lawlessness. The most vulnerable in our society, the aged, and children depend on the state through taxes to assuage and mitigate poverty, unemployment, and hunger. Any wilful defiance of the law will be resisted,” said Kieswetter.
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LA LUCIA MANSION
With Mkhize and her multi-million rand La Lucia mansion the talk of the town since the events of Tuesday, IOL revisits the spectre around the mansion which has been a constant in the Durban news headlines for over two decades. We also relook at Mam’ Mkhize’s past controversies.
When Mkhize landed a TV deal with Showmax for her reality show, Kwa Mam’ Mkhize, the show arguably changed how people viewed Mkhize, with many now seeing her as an entertaining and likable socialite and businesswoman, rubbing shoulders with Somizi and other TV stars, rather than the controversial businesswoman tycoon and alleged tax dodger, which she had been better came to be known as in the press.
The show, titled Kwa Mam’ Mkhize, debuted in January 2020, also followed the lives of her children Sbahle and Andile Mpisane. In later seasons, Andile’s wife Tamia, would also appear on the show.
The Mkhize/Mpisane family’s multi-million rand house has become a bit of a landmark in the wealthy north Durban suburb of La Lucia, with its massive high walls, heavy security detail and how the family has acquired several properties around it to make it even bigger, for themselves and their staff.
The house was initially bought in 1995 for an undisclosed amount, according to the Durban publication, the Sunday Tribune, and in the early 2000s, it was known for its annual celebrity-filled new years eve parties.
By 2007, as the family business secured more government contracts, they bought the first of two neighbouring properties to make the massive property even larger. The Mkhize/Mpisane family reportedly paid R3.5 million for a neighbours property, which was then converted into a showroom for the families impressive fleet of cars, which includes a Maserati Pininfarina, an Aston Martin, a Porsche Turbo and a Ferrari, among others.
In 2014, the family went shopping again for a neighbours house, paying R2.9 million – including an extra R400,000 as appreciation to the sellers – before demolishing the house to reportedly build a R2 million valued entertainment pad for their son, Andile – who is a soccer star these days.
In 2017, for Andile’s 16th birthday party – which was hosted at the mansion, he was gifted with a R2.3m-valued Mercedes Benz AMG G63 SUV in scenes reminiscent of MTV’s My Super Sweet 16 TV show. At the party, award-winning rapper Nasty C performed, as did Babes Wodumo, who was the undisputed star in the entertainment scene back then.
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In October 2020, the taxman secured an order to liquidate Mkhize’s company, Zikhulise Cleaning Maintenance and Transport (ZCMT), after it failed to settle its tax matters with SA Revenue Services (Sars). The company owed R122 million, to which it disputed owing R50 million.
The Sunday Tribune at the time reported that Judge Colleen Collis found the company had failed to provide substantive proof of its tax returns and based on evidence provided by Sars, the inescapable conclusion was ZCMT was factually and commercially insolvent.
In August 2021, the Mkhize family went shopping for a soccer club and they reportedly paid R50 million for the Bloemfontein Celtics’ PSL status. They moved the club to Pietermaritzburg and rebranded the club as Royal AM, AM for Andile Mpisane, the club’s chairman-cum-footballer, who also has a penchant for dancing and singing.
In December 2021, Mkhize’s son Andile tied the knot with Tamia Louw, creating a social media storm as many blamed the reality TV star mom as her son overlooked Sithelo Shozi, the mother of his two older children.
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The feud between Andile, Shozi and Mkhize took another turn in July 2022, as Shozi declared on social media that she was a single mom and that her daughter had no father or extended family.
The tension would later heighten in August 2022, as claims of physical abuse were levelled at Andile by Shozi. She also posted pictures showing her face bust up and her phone severely damaged.
Back to Royal AM FC, once they had moved to the KZN capital, Mkhize secured a lucrative sponsorship deal from the cash-strapped local Msunduzi Municipality, which would net the club R9 million per season for playing the home matches at the Harry Gwala Stadium. The deal has been the subject of fierce criticism since it was signed as the struggling municipality struggles to fund its operations for residents, with former Cogta MEC Bongi Sithole-Moloi, describing the deal as unreasonable.
In October last year, the Sunday Independent reported about how Sars was circling around Mkhize and her La Lucia property over an outstanding tax debt to the tune of about R50 million.
It was reported that Mkhize and her club, Royal AM, were not tax compliant. Court documents revealed that Mkhize at the time owed Sars over R12.7 million, in her personal capacity, while the football club owed R37.9 million.
Three of Mkhize’s properties in La Lucia, Umhlanga, and two in Gauteng, have been attached since, including Royal AM’s properties in Umhlanga and Umshwathi outside Pietermaritzburg.
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After separating from Mpisane, the couple divorced, but they both share the massive La Lucia property, with each of them having their own wing.
In July, Mpisane appeared before a tax inquiry where he answered questions about a Sbusha Trust as a trustee. However, he said he knew nothing about the trust, saying it had been introduced during his period of separation with Mkhize. He said they separated in 2018.
Mpisane was part of a political formation, the Gap Fixers SA, which failed to take off during the May 29 elections.