SPAR responds to fraud allegations
SPAR has pushed back against allegations of VAT fraud, insisting that no finding of fraud has been made against the retailer or any of its stores, and described the claims as inaccurate and misleading.
The response follows a Business Day article that outlined a due diligence report prepared by BDO South Africa in connection with the proposed sale of a SPAR corporate-owned store in Pretoria.
According to the allegations referenced in the report, concerns were raised about accounting and VAT-related practices at the Bloed Street SuperSPAR and TOPS store.
The matter has also been linked to complaints lodged against SPAR Group chairman Mike Bosman.
The prospective buyer of the store alleged that findings on the management of one store point to a broader problem in the group.
In a statement to shareholders and stakeholders, SPAR stressed that the BDO report was by the prospective buyer and businessman, Amaan Sayed, as part of a proposed acquisition of the Bloed Street store, which he previously owned.
SPAR said the report was prepared during “a standard due diligence exercise” for the proposed acquisition of the store at a purchase price of R4 million.
The retailer emphasised that the review was limited in scope and should not be interpreted as evidence of broader problems within the group.
The company also sought to reassure investors about its governance and financial controls.
SPAR noted that its external auditor, PricewaterhouseCoopers (PwC), has not raised any reportable irregularities in respect of the Group’s financial reporting or governance processes.
“SPAR rejects any suggestion that Value-Added Tax (VAT) fraud has been established,” it said. “No finding of VAT fraud has been made against SPAR or the corporate store concerned.”
“The characterisation of the matter as a ‘VAT fraud saga’ is therefore totally inaccurate and misleading.”
SPAR defends its chairman
SPAR further noted that the only formal regulatory engagement to date has been with the South African Institute of Chartered Accountants (SAICA), which received a complaint against Bosman.
The company said Bosman had “responded fully” to the complaint. The retailer also highlighted the circumstances surrounding the report and the subsequent complaints.
According to SPAR, Sayed commissioned the due diligence review in mid-2025 while negotiating to repurchase the Bloed Street store.
He later signed a sale agreement in February 2026, subject to approval for membership of the SPAR Guild of Southern Africa.
However, SPAR said the Guild rejected Sayed’s application on 18 March 2026 due to concerns over his credit history and the need to protect the SPAR brand.
“Within days of that decision, Mr Sayed filed coordinated regulatory complaints aimed specifically at SPAR’s chairman, Mike Bosman,” the company said.
SPAR argued that this sequence of events is directly and materially relevant to any assessment of the motivation and credibility of the complaints.
The group said the decision to reject the application was made independently by the North Rand Regional Committee and supported by the Guild through established governance processes.
It added that the decision was based on objective criteria, including credit history and brand stewardship. SPAR also strongly defended Bosman against calls to declare him a delinquent director.
“The Group stands very firmly in support of Mr Bosman’s leadership and views the request as baseless, vexatious, malicious and without merit,” it said.
The company reiterated its commitment to high standards of governance, compliance, ethical trading and financial control.
It added that any concerns raised are investigated through the appropriate internal and external channels.
SPAR further advised shareholders that the issues raised do not affect any information previously disclosed to the market.
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