The South African entertainment industry woke to shocking news this morning: Duma Ndlovu, the celebrated creator of popular television dramas Muvhango and My Brother's Keeper, was arrested by the Hawks and spent a night in custody.
The arrest, which took place on the evening of September 30th, 2024, followed an investigation into allegations of fraud and tax evasion. Ndlovu appeared in court alongside two co-accused, Rodney Mutsharini and Maxwell Mloyi, both facing charges related to the alleged tax fraud scheme.
The charges against Ndlovu and his co-accused are serious, involving an alleged conspiracy to defraud the South African Revenue Service (SARS) of an estimated R26 million. The alleged fraud encompasses both Ndlovu's personal income tax returns and the tax affairs of his company, Kanoboya Consulting (Pty) Ltd (formerly Ambrobite (Pty) Ltd).
The Investigative Directorate for Priority Crime Investigation (IDAC), working in conjunction with SARS, meticulously investigated the case, uncovering a complex web of alleged misrepresentations and fraudulent activities.
According to IDAC spokesperson Henry Mamothame, the investigation revealed an alleged collusion to misrepresent Ndlovu's tax affairs. A key element of the investigation focused on a contract awarded by SARS to Bain and Company.
Bain and Company, in turn, allegedly subcontracted Ndlovu's company, Kanoboya Consulting, to provide strategic and project management services between November 2013 and September 2016.
Mamothame stated that, "This was, however, misrepresented by Ndlovu and his tax practitioner, Mloyi, when submitting tax returns to SARS. Mloyi together with Ndlovu declared to SARS that the company was dormant and that it never traded during the tax period 2013 to 2017, resulting in a financial loss to SARS."
The alleged fraudulent activities also extended to Ndlovu's personal income tax returns. Mamothame explained that, "in relation to his personal income tax, it was discovered that Ndlovu together with Mutsharini misrepresented his personal income tax return for the period 2016 to 2019.
"Furthermore, they submitted his personal income tax return for the years 2020 and 2022 but neglected to make a submission for the year 2021, which resulted in another financial loss to SARS. The total financial loss to SARS due to these alleged offences is estimated at approximately R26 million."
Following his arrest and overnight detention, Ndlovu appeared before the Palm Ridge Specialised Commercial Crime Court on October 1st, 2024. The court granted him bail of R100,000, while Mutsharini and Mloyi were each granted bail of R50,000.
Strict bail conditions were imposed, including the surrender of travel documents, regular reporting to police stations, and the requirement to seek court permission for any international travel. The case has been adjourned until November 11th, 2024, to allow for further investigations.
The arrest of Duma Ndlovu has sent shaken the South African entertainment community. Ndlovu is a highly respected figure, known for his significant contributions to the development of local television programming. The seriousness of the charges, however, underscores the importance of accountability and transparency, even within the creative industries.
