Retail giant SPAR Group has strongly denied allegations of VAT fraud, insisting that no findings of fraud have been made against the company or any of its stores and describing recent claims as inaccurate and misleading.
The retailer's response follows a report published by Business Day that referenced a due diligence review conducted by BDO South Africa as part of a proposed sale of the corporate-owned Bloed Street SuperSPAR and TOPS store in Pretoria.
According to allegations contained in the report, concerns were raised regarding accounting and VAT-related practices at the store. The matter has also been linked to complaints lodged against SPAR Group chairman Mike Bosman.
The prospective buyer, businessman Amaan Sayed, reportedly alleged that findings relating to the management of the Bloed Street store pointed to broader issues within the group.
In a statement to shareholders and stakeholders, SPAR said the BDO report was commissioned by Sayed during negotiations to reacquire the Bloed Street store, which he had previously owned.
The company said the report formed part of a routine due diligence process linked to a proposed acquisition valued at R4 million and stressed that its scope was limited to the specific transaction.
SPAR rejected suggestions that the report constituted evidence of systemic governance or tax-related problems within the wider organisation.
The retailer also sought to reassure investors about its governance structures and financial controls, noting that its external auditor, PricewaterhouseCoopers (PwC), has not identified any reportable irregularities relating to the group's financial reporting or governance processes.
"SPAR rejects any suggestion that Value-Added Tax (VAT) fraud has been established," the company 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."
The group further stated that the only formal regulatory engagement to date has been with the South African Institute of Chartered Accountants (SAICA), following a complaint lodged against Bosman.
According to SPAR, Bosman has responded fully to the complaint.
The company also outlined the timeline surrounding the due diligence process and subsequent complaints.
SPAR said Sayed commissioned the review in mid-2025 while negotiating to repurchase the Bloed Street store and later signed a sale agreement in February 2026, subject to approval for membership of the SPAR Guild of Southern Africa.
However, the retailer said the application was rejected on 18 March 2026 after concerns were raised regarding Sayed's 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 the sequence of events is relevant when assessing both the motivation and credibility of the complaints.
The company said the decision to reject the application was made independently by the North Rand Regional Committee and subsequently supported by the Guild through its established governance processes.
According to SPAR, the decision was based on objective criteria, including creditworthiness and brand stewardship considerations.
The retailer also firmly rejected calls for Bosman to be declared 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," the statement said.
SPAR reiterated its commitment to strong governance, compliance, ethical business practices and sound financial management, adding that any concerns raised are investigated through the appropriate internal and external channels.
The company further advised shareholders that the matters raised do not affect any information previously disclosed to the market.