Tax issue results in marathon owing R1.4m to suppliers
It seems that 'Africa's Richest Marathon' is in a predicament as SARS is said to have refused it a Section 18A certificate, and the athletes and sponsors are fuming.
The Mpumalanga Marathon NPO’s organisers of this would-be prestigious inaugural event have ignited outrage among suppliers who have not only taken legal action, but also filed criminal charges of fraud and theft against it.
Caleb Lekhuleni, chief organiser of what was marketed as ‘Africa’s Richest Marathon’, finds himself in a predicament as SARS allegedly refuses to issue a Section 18A certificate. Without it, the sponsors are apparently withholding the promised funds. A Section 18A certificate is issued by SARS and allows a sponsor to claim tax back for their financial contribution.
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“I know we owe the money, but I believe when I registered the marathon as a non-profit organisation last year, I was let down by the tax practitioner who handled the matter. She should have sorted out these issues, such as the 18A certificate and the proper constitution for us,” said Lekhuleni.
Suppliers are now on a warpath due to unpaid accounts, hoping for intervention from the Mpumalanga government. Many suppliers, with reputations built over years, face losses exceeding R1.4m in unpaid bills.
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Companies like Unity Technology, Doug’s Hiring and event organiser Koos Schoonraad, involved in Innibos, are among those affected.
“They used my good name to get their hands on my suppliers and now all of them are out of pocket due to non-payment,” said Schoonraad, appointed as the logistical manager by the marathon’s organising committee.
Andrew Bullen, the owner of Doug’s Hiring, awaits R60 000, while singer Debbie Kaye, who entertained the crowd at the finish line, also remains unpaid.
Abigail Davis, the owner of Unity Technology, echoed similar frustrations.
“Everybody is now looking at me for payment, but I was only appointed by the Mpumalanga Marathon NPO to organise the marathon. It was such a successful event that put the province on the runner’s calendar, yet I stand to lose more than R1.2m due to unfulfilled promises of sponsorship and payments. It is so embarrassing to face these suppliers who trusted me. I acted on what is turning out to be a conundrum of confusion and half-truths,” Davis said, having personally visited most suppliers to explain the situation.
Desperate to resolve the issue, Davis met with Godfrey Ntombela, the HOD of the Mpumalanga Department of Culture, Sport and Recreation (DCSR). “I cannot divulge the meeting’s content, but the DCSR indicated they would engage in interdepartmental discussions with SARS.”
Despite her extensive experience in organising marathons in the Lowveld, Davis declared she would no longer be involved with the Mpumalanga Marathon. “I’ve had it. I am finished,” she said.
@lowvelder The winner of the 42.2km race at the Mpumalanga Marathon, Jobo Khatoane, arrives at Riverside Mall. #mpumalangamarathon #marathon #marathonwinner #mpumalanga🇿🇦 #riversidemall
Earlier reports indicated winners of various categories did not receive their prize money, including Jobo Khatoane of the Maxed Elite Running Club in Lesotho and Nedbank Running Club’s Tadu Nare, who won R1m each in the 42.2km race. Paul Bester, the president of Athletics Mpumalanga, confirmed that the prize winners for the 21.1km and 10km races had received their payments.
However, the 42.2km race winners have not been paid. We contacted the Born to Win [BtW] club, under whose auspices the marathon was held, about the prize money. They indicated they would finalise the matter within a week,” Bester said.
Failure to resolve this issue could result in the BtW club facing suspension as a registered club.
Lekhuleni is identified as a central figure in the chaos. After numerous unsuccessful attempts to reach him, Chris Jacobs of Fixall opened a case of fraud and theft with the police.
@lowvelder The winner of the 42.2km race at the Mpumalanga Marathon, Jobo Khatoane, shares his experience. #mpumalanga🇿🇦 #mpumalangamarathon #marathonwinner
The marathon’s tax practitioner, known only as Karabo, did not respond to questions about the NPO registration.
