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Tax-Ridden Company Scores Business from Government, Despite Noncompliant Status
 

Pressure is mounting on the Free State Department of Education on why a company owing South African Revenue Services (SARS) continues to do business with the government despite being non-compliant.
 
This followed our article published in April concerning the conduct of MEC Makgoe’s wife who sources say runs the department and goes as far as sending texts demanding officials utilize
her Partuma, a nightclub-turned-guest house.  
 
Step Up SA News has established Unlimited Travel Agency owes South African Revenue Services (SARS) R8 431 683.86 and according to sources, the Department of Education continues to give Unlimited Travel Agency business.
 
An alleged modus operandi was explained by a source who spoke on condition of anonymity on how the MEC played this.
 
“Unlimited Travel Agency’s contract came to an end towards the end of 2021. MEC Tate Makgoe then instructed his deployee in the SCM Unit who he replaced Mr. Sebeela with, in SCM, Mr. Legegeru to create a continuation of this corrupt relationship with Unlimited Travel Agency by inviting quotations from other travel agencies.
 
The purpose was to create a traveling agency contract specifically for his office and through the Acquisition process in SCM under Mr. Legegeru’s direction invited quotations and re-appointed Candy’s Unlimited Travel Agency for 3 months or R500 000,00 whichever comes first.”
 
Another source said since Unlimited Travel Agency was booking MEC’s guest house and this was a favor returned.   
 
“Candy’s Unlimited Travel Agency books officials of the department at the MEC’s business premises, Partuma Nightclub/Bophelong. So the MEC was returning the favor and keeping her afloat at the expense of public funds.
 
It must be noted that the whole process was not conducted through the normal Bid Committees of the department but rather through an SCM process to ensure that the process is held secretly to specifically favor Candy Smith.
 
This transaction warrants investigation by the Auditor General or any other law enforcement agencies.”
 
 
Bed and Breakfast operators in the province allege to be owed millions of rands. Step UP SA News has learned some of these service providers have taken legal action against the company.
 
It is alleged that some of the service providers who are owed by Candy Smith are Izekaya Guesthouse (Kroonstad), Woodlands (Parys), Golden Gate Hotel (Clarens), and some privately owned B&Bs.
 
Candy Smith said the department still owed her money and she admitted to owing service providers due to 30 days period government uses to pay.
 
 
Howard Ndaba, Free State Education spokesperson did not respond to our questions.

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