| Fri 8 Nov 2002, 17:18 | | Tigon Limited - Sars Denies False Meda |
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Tigon Limited - Sars Denies False Meda
Tigon Limited
Share Code: TGN
ISIN Code: ZAE 000022240
SARS DENIES FALSE MEDA REPORTS
Press Release
On Tuesday, 5 November 2002, it was incorrectly reported on radio that certain
raids carried out by SARS and the police on Galahad and Grant Ramsay were on ".
homes belonging to officials who work for Tigon - which is being investigated
for fraud amounting to millions of rands". This report was false and SARS has
assured Tigon that it did not emanate from them. After Tigon requested SARS to
contact them, the relevant radio station (who had made no attempt to contact
Tigon) later corrected their misleading reporting.
SARS has confirmed that they did not ask for nor obtain a warrant to search the
premises of any member of the Tigon group of companies or any of their directors
or officials. Again, this is contrary to other incorrect and defamatory media
reports.
It was also reported in the press that a Tigon subsidiary, Synergy Management,
could be the subject of an investigation by SARS. However, the warrant obtained
by SARS for Tuesday`s raids refers to a company, Synergy Management Services
(Pty) Limited, which has no connection to the Tigon group or any of its
directors.
Tigon wishes to place on record that the group has always co-operated with SARS
to the full extent that it is able and will continue to comply with any lawful
request for information on its tax and VAT affairs, which are correct and up to
date. SARS carries out frequent audits on the group`s VAT returns and has not
informed Tigon of any outstanding queries.
The Tigon group has never purchased any company (either profitable or loss-
making) through Grant Ramsay, the Galahad companies or their predecessor
companies, nor has it been a party to any tax or VAT irregularity. Tigon
distances itself from any irregular conduct which may have taken place in any
companies currently being investigated by SARS.
Contrary to the misleading impression created by certain media reports, Tigon
has been instrumental in uncovering major tax and VAT-related frauds in terms of
which proceeds of cheques made payable to SARS were in fact never received by
SARS and found their way into the bank accounts of the family trusts of the
former owners of EuroPoint, Gavin Varejes and Tony Strike. Those frauds form
part of a civil action instituted by the Tigon group against Varejes, Strike and
certain of their associated trusts and companies, in terms of which the Tigon
group seeks restitution amounting to R20 million in cash plus interest, as well
as some 28 million Tigon shares. On the date of summons, the claim by Tigon
amounted to some R210 million. The civil action instituted by Tigon details
nine categories of serious fraud by Varejes and Strike.
On 30 November 2001, and based on the prima facie documentary evidence of frauds
presented to the court which included explicit documented details of the major
VAT-related frauds in EuroPoint Cellular during 1997 (prior to signature of the
EuroPoint sale agreement by Varejes and Strike) the Tigon group obtained an
interim interdict freezing certain of the defendants assets. The Tigon group
has, in fact, twice issued subpoenas on officials at SARS to give evidence at
the trial relating to these frauds but, on each trial date (8 May 2002 and 28
October 2002), the defendants managed to postpone the trial. Tigon also
informed the Scorpions and the Asset Forfeiture Unit of the EuroPoint frauds,
but was advised not to press the criminal proceedings against Varejes and Strike
at that stage as to do so could further delay the civil proceedings.
Tigon has asserted from the beginning that Varejes and Strike have orchestrated
a negative media campaign against Tigon aimed at destroying the value of the
share and making any settlement easier for them to negotiate. The latest media
frenzy linking the raids on Grant Ramsay and the Galahad companies to Tigon
emanates from the same source. The documents supporting the court order
obtained by SARS this week reveal that, of some 80 companies under investigation
by SARS, the only fraud being investigated in a company presently or previously
associated with Tigon is the pre-acquisition EuroPoint Cellular VAT-fraud of
1997 which was uncovered by Tigon. The documents further reveal that on 8
October 2002, i.e. just 3 weeks before the trial against Varejes and Strike was
set down to be heard, Strike approached SARS and gave them a highly edited and
distorted version of the EuroPoint Cellular VAT fraud, thereby placing all
responsibility on Ramsay and failing to disclose the existence of material
documents already placed before the High Court by Tigon in the successful
interdict application. Tigon has now handed these and other documents to the
relevant SARS officials and to the State Attorney.
The presence of television, radio and newspaper crews at the Galahad offices at
the commencement of the raid, together with the incorrect media link to Tigon,
were a clear attempt to embarrass and discredit Tigon and affect its share
price.
Ends
ISSUED FOR : Tigon Limited
CONTACT : Gary Porritt Tel : (033) 394 2854 or Sue Bennett Tel:
(011) 440 5640
FAX NO : (033) 394 2218 or (011) 440 5642
E-MAIL : sue@tigonlimited.co.za
WEBSITE : www.tigonlimited.co.za
ISSUED BY : TISH STEWART PR ASSOCIATES
CONTACT : Tish Stewart (011) 325 4195 Cell: 082 443 6399
FAX NO : (011) 325-4199
E-MAIL : Tish@tspr.co.za
DATE : 08 November 2002
Date: 08/11/2002 04:57:03 PM Produced by the JSE SENS Department
