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| Sports |
| MRA seizes Fam’s bus |
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by
Leonard Sharra, 31 July 2003
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18:15:27
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The 26-seater minibus belonging to the Football Association Malawi (Fam), which Fam president John Zingale claimed to have undervalued for fear of custom duty has finally landed into the hands of Malawi Revenue Authority, (MRA).
Officials from MRA on Wednesday afternoon impounded the bus from Fam’s Mpira House pending investigations on the duty evasion reports.
“Indeed, it is true that we have impounded the bus. (We suspect) there was evasion of duty and that is against the law. Our tax audit and investigations division has been following this issue,” said MRA’s Senior Tax Payer Education Officer McHizzal Kawanga in an interview Thursday.
Kawanga shot down suggestions that the authority was basing its action on recent press reports that Zingale was involved in a tax evasion deal.
“It’s just a coincidence. We started our investigations sometime back. As soon as we are through with our investigations and establish there was evasion of tax, we are going to fine them. They will have to pay a maximum of 10 times the amount evaded. If they don’t pay, we will auction the bus to recover the money,” said Kawanga.
Fam vice president Sameer Suleman bemoaned the action by MRA, saying the move would affect the Malawi national football team’s preparations for the crucial Cosafa Cup semi final match against Zambia.
“MRA could not have done that. The national team will be going into camp shortly and we will need that bus. If the Flames lose this match, it is Fam which will be blamed. We will be meeting MRA to discuss the issue,” said Suleman.
Another Fam executive member, who opted for anonymity said the authority had rushed to take action on the association.
“They have acted fast. They could have waited for the report from the commission of inquiry that has been instituted. The case we have against Zingale is not that of evading duty. We are saying that Zingale bought the bus in South Africa at US $5,000 (about K0.5m) and lied to the executive that he bought it at US $11,500 (about K1m).
“He told the executive that he brought documents showing the bus was purchased at $5,000 for fear of custom duty. We can’t take his explanation because the firm that sold us the bus is just as big as Toyota Malawi and there is no way they can issue a fake invoice. Zingale just has to explain what he did with the $5,500 balance,” said the official.
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