SPAR says BDO report misrepresented as VAT fraud allegations escalate

Key topics:No VAT fraud findings; BDO report mischaracterised; SAICA engagedDispute with Amaan Sayed after SPAR Guild membership rejectionSPAR to pursue legal action over defamation; backs leadership and strategy.By Fortunate Magabe.The SPAR Group wishes to address the recent media report published by Business Day to provide a more accurate account of matters involving a BDO South Africa report and allegations raised by Mr. Amaan Sayed.To start, the characterisation of the matter as a "VAT fraud saga" is inaccurate and misleading. No finding of VAT fraud has been made against SPAR or the corporate store concerned in any recognised legal, accounting or regulatory sense. To date, the Group has only been formally approached by SAICA, with which the Group is cooperating fully and transparently.The SPAR Group clarifies that the report was commissioned by Mr Sayed himself as part of his due diligence process to re-acquire the Bloed Street SUPERSPAR and TOPS at SPAR stores and was conducted as an agreed-upon procedures engagement. It is not a forensic audit on the Group’s operations, nor does it make findings of systemic misconduct within the SPAR Group. In fact, the Group’s external auditor, PwC has raised no reportable irregularities regarding the Group's financial reporting or governance processes..Read more:.Is SPAR’s R300m UK retreat enough to save its soul from an accidental listing?.Equally noteworthy is the fact that, despite receiving the BDO report in September 2025, Mr Sayed continued negotiations regarding the acquisition of the store and subsequently signed a sale agreement in February 2026. Regulatory complaints were only initiated after his application for membership of the SPAR Guild was declined - a timeline that speaks to the true motivation behind these allegations.The SPAR Guild, comprising independent retailers from across the country, is the primary authority responsible for overseeing membership within the SPAR network. Membership of the Guild is a mandatory requirement for any retailer wishing to own and operate a SPAR store.The decision to decline Mr Sayed's application for re-admittance was taken by the North Rand Regional Committee of the Guild, and in accordance with the Guild's established governance processes and objective membership criteria, including considerations relating to credit history and brand stewardship, and the Guild stands fully behind that decision. Attempts to characterise a sound governance decision as anything other than the proper exercise of the Guild's mandate will be firmly rebutted.It is regrettable that this matter has escalated in this manner, considering the Group has sought to engage with Mr. Sayed constructively and in good faith to address his concerns. Unfortunately, despite these efforts, unfounded allegations have continued to be advanced publicly in the media, causing unnecessary reputational harm not only to the SPAR brand, but also to the broader network of independent retailers who operate under the brand.Consequently, SPAR has placed Mr. Sayed on legal terms and has instructed its attorneys to pursue all available remedies regarding defamatory statements made against the Group, as well as breach of a confidentially agreement in relation to the report.Regarding the complaints against SPAR Group Chairman, Mr Mike Bosman, and the request for a “delinquent director” declaration, SPAR views this as an extraordinary remedy under the Companies Act, reserved for serious and proven misconduct. The Group stands very firmly in support of Mr Bosman’s leadership and views the request as baseless, vexatious, malicious and without merit.The SPAR Group is of the opinion that individuals are entitled to approach regulators and oversight bodies. However, that right does not extend to the public dissemination of inaccurate, misleading or untested allegations that create a false narrative and cause reputational harm..Read more:.Leadership shake-up at SPAR: Isaacs replaces two-year CEO Swartz.While individual retailer disputes may attract public attention, they should not be allowed to overshadow the strength and success of SPAR's broader independent retailer network.SPAR remains focused on the future. The Group is firmly executing its strategic reset and restoring long-term value across the business and in support of its entrepreneurial retailers and communities across South Africa. It will not be distracted, diverted or derailed by unfounded allegations that seek to undermine the progress being made..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox every morning on weekdays. Register here.Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.

SPAR says BDO report misrepresented as VAT fraud allegations escalate

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