The Palm Ridge Magistrates’ Court has convicted former Telkom SA SOC Ltd Group Chief Executive Officer Sipho Nkosinathi Maseko for failing to submit tax returns.
NPA
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South Africa
Former Telkom CEO convicted over failure to submit tax returns
Former Telkom Group CEO Sipho Nkosinathi Maseko has been convicted in his capacity as a director of five companies for failing to submit tax returns to SARS. An admission-of-guilt fine of R85,000 was paid on behalf of the entities.
The Palm Ridge Magistrates’ Court has convicted former Telkom SA SOC Ltd Group Chief Executive Officer Sipho Nkosinathi Maseko for failing to submit tax returns on behalf of five companies in which he served as a director.
In a statement on Friday the National Prosecuting Authority (NPA) said that an admission-of-guilt fine of R85,000 was paid on behalf of the companies.
The companies are One Fountain Properties, One Fountain Industries, One Fountain Capital, Afrifund Advisory Services and Afrifund Investments.
Maseko appeared in court facing 85 counts of contravening Section 234(2)(d) of the Tax Administration Act 28 of 2011. The charges related to the non-submission of Pay As You Earn (PAYE), Value-Added Tax (VAT) and Corporate Income Tax (CIT) returns.
The State argued that Maseko and Sonwabo Mtshazo were directors of the five companies, which had failed to submit more than 85 tax returns over several years.
State Advocate Athenkosi Mancoba told the court that the failure to submit tax returns hindered the South African Revenue Service (SARS) from effectively administering taxes and collecting revenue.
The NPA said the companies had since submitted all their outstanding returns, allowing SARS to assess them.
The investigation began after a case was opened in September 2025. The NPA confirmed that the investigation was not a joint investigation and that no tip-off had been received.
The matter forms part of Project Honey Badger, an initiative involving the NPA, SARS and the Directorate for Priority Crime Investigation (DPCI) aimed at improving tax compliance through the prosecution of individuals and entities that fail to meet their legal tax obligations.
The NPA welcomed the conviction, saying it reinforces the importance of complying with tax legislation and reminds taxpayers of their legal obligation to submit returns as required by law.
