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ERS GRAB DIRECTORS’ CATTLE FOR OWED TAXES

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MBABANE – Due to unavailability of adequate cash to settle tax debts, a court order has been issued to attach cattle for company directors.

The deputy sheriff has been instructed to ensure that the cattle belonging to the directors of Kinalimodise Investment (PTY) LTD are attached to settle a debt owed to Eswatini Revenue Srvices (ERS). The company, according to court papers, is registered in Siphofaneni in the Lubombo Region. On the strength of the court documents, the directors are domiciled in Siphofaneni.

The attachment of cattle by a public enterprise may be viewed in some quarters as rare, but it happened in the early 1990s. The then SwaziBank, now EswatiniBank, under the leadership of the late Sam Kuhlase, launched what to be later known as the infamous grab-a-cow debt recovery programme. Debt collectors led by the late Deputy Sheriff, Maswazi Sibandze, repossessed anything valuable from defaulters, including cattle, goats, chickens and maize harvest.

Feared

Taking no prisoners, Sibandze was one of the most feared deputy sheriffs of that time, ransacking homes and churches, causing defaulters to hide under beds and in the forests. This is not to suggest that ERS will do likewise as the EswatiniBank debt recovery programme was marred by controversies, because the government owned financial institution did not benefit from the cattle that the deputy sheriffs collected.

According to court papers in the possession of Eswatini News, in a matter held at the High Court of Eswatini in Mbabane, ERS is set to recover an outstanding amount of E215 849.27 through, among other things, auctioning these cattle. The auction is expected to take place on January 31, 2025, at the Manzini Magistrates Court.

The legal proceedings against the company began when the ERS, formerly known as the Swaziland Revenue Authority (SRA), initiated action against Kinalimodise Investments and its directors, Ntombikayise Dudu Maziya, Gabile Bhekithemba Maziya and Mbalenhle Celiwe Anibal.

ERS claimed that the defendants had failed to pay value-added tax (VAT) owed to government, as stipulated under Section 40 of the Value Added Tax Act. Despite multiple demands for payment, the defendants allegedly neglected to settle the outstanding amount, prompting the tax collector to pursue a legal recourse. Having reviewed the evidence presented, the court granted ERS a Writ of Execution, allowing the agency to recover the owed tax through the sale of the defendants’ assets—in this case, livestock.

A Writ of Execution is a legal document issued by a court that authorises the enforcement of a judgment. It typically directs a law enforcement officer, such as a deputy sheriff, to take action in order to fulfil the court’s ruling. According to a Public Notice issued on January 15, 2025, in the Times of Eswatini, the auction will be conducted by the Hhohho district deputy sheriff at the Manzini Magistrates Court, an established venue for public auctions in the region.

Notice

The notice also advises interested bidders to attend, as the sale will be open to the public and that it will be held on a Friday. In the notice, it shows that five cattle will be sold by public auction at 10am on the mentioned date. It is understood that action taken by the ERS aligns with the provisions set forth in the Revenue Authority Act, 1 of 2008, which empowers the agency to recover taxes owed to government. The court’s ruling reinforces the authority of the ERS to enforce tax compliance through various means, including asset liquidation.

In past cases, similar measures have been employed by revenue authorities across different countries when taxpayers fail to meet their obligations. Research by this newspaper has not shown jurisdictions that have witnessed attachments of cattle to pay debts arising from failure to honour tax obligations. The research was confined to Africa, mainly the Nguni which values cattle. However, the South African Revenue Service (SARS) has been conducting auctions of movable and immovable property to recover unpaid taxes. This has also been happening in the country.

Consequences

It is said that such actions serve as a reminder to taxpayers of their responsibilities and the potential consequences of non-compliance. Meanwhile, the directors of Kinalimodise Investments could not be reached for comment on the matter. This newspaper wanted to pose a few questions unrelated to the merits and de-merits of the case, such as whether they were aware of the court order authorising the attachment of their cattle.

They were not located at Siphofaneni during our visit on Thursday. It must be said though that emaSwati hold cattle in high esteem as, apart from just using them for beef or milk, it has other cultural purposes. It is for this reason that emaSwati generally have special names for cattle, such as Jamuluti, Bhantong, or Blens and interestingly, even the beasts know their names. Noteworthy, through the Ministry of Agriculture, cattle owners can be identified just by checking the ear tag attached to livestock.

These ear tags contain numbers which are registered under the owner. With this information, the identity document (ID) number of the owner of the beast can be identified through the digits on the ear tag or vice versa.
That is how cattle are valued in Eswatini.


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