Top South African businessman and former Telkom CEO Sipho Maseko convicted in Palm Ridge Magistrates’ Court

The Palm Ridge Magistrates’ Court has convicted former Telkom Chief Executive Officer Sipho Maseko on tax-related issues.

This was done in his representative capacity as a director of five companies for failing to submit tax returns to the South African Revenue Service (SARS).

The companies are One Fountain Properties, One Fountain Industries, One Fountain Capital, Afrifund Advisory Services, and Afrifund Investments.

It forms part of Project Honey Badger, an initiative led by the National Prosecuting Authority (NPA), SARS and the Directorate for Priority Crime Investigation (DPCI).

The project aims to improve tax compliance by prosecuting individuals and entities that fail to meet their statutory tax obligations.

The investigation into Maseka’s entities began after a case was opened in September 2025. It was not a joint investigation, and no tip-off was received.

Maseko appeared in the Palm Ridge Magistrates’ Court facing 85 counts of contravening the Tax Administration Act 28 of 2011.

The charges related to the failure to submit 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 and failed to submit 85 tax returns over several years.

State Advocate Athenkosi Mancoba argued that the failure to submit tax returns hampers SARS in fulfilling its mandate to administer tax effectively and collect revenue.

The entities have since submitted all their outstanding returns, enabling SARS to assess them. An admission-of-guilt fine of R85 000 was paid on behalf of the entities.

Sipho Maseko’s run-in with the law

This is not Maseko’s first run-in with the law. In 2014, he made headline news for using fake number plates on his Range Rover.

This situation led to an investigation by the City of Johannesburg Metro Police Department (JMPD) into the car licence-cloning scandal.

At the time, Maseko stood accused of running up R30 000 in traffic fines to be paid by another driver.

Businessman Mabena Motshoane explained that he spotted his cloned number plates on a black Range Rover, belonging to Maseko.

He said that Maseko ran up about R30 000 in traffic fines, which he had to pay, using the cloned number plates.

“He claimed that his old black Range Rover had that number plate and he had personalised it to his own name,” he said.

Motshoane later discovered his car had previously been owned by Maseko, which explained access to the number plates.

According to Motshoane, people in high places have been calling him and asking him to drop the case. “I can’t,” he said.

The Johannesburg Metro Police Department confirmed in 2014 that Maseko was investigated for the fake number plates.

The JMPD sent officers to Maseko’s Houghton home to inspect the vehicle, but they were refused entry.

At the time, Telkom responded to queries about the issue, saying it was a matter personal to Maseko and in no way related to the company.

Maseko appeared at the Wynberg Magistrate’s Court in Johannesburg on this issue, but the NPA withdrew and dropped the charges against him.