SOUTH AFRICA · RETAIL
Key Facts
- —The country South Africa is Africa’s most developed economy, and the Johannesburg Stock Exchange (JSE) is the continent’s largest bourse.
- —What happened On Friday 23 October 2026, Shoprite told shareholders that director Sipho Maseko was not personally convicted when five of his companies paid tax-return fines.
- —The company Shoprite Holdings is South Africa’s biggest supermarket group, listed on the JSE, and Maseko has sat on its board since June 2023.
- —The fines Five dormant companies paid admission-of-guilt fines totalling R85,000 (about US$5,100) in the Palm Ridge Magistrate’s Court, reported on 9 October.
- —The two versions The National Prosecuting Authority (NPA) says Maseko was convicted as a director of the companies, while Shoprite says he faced no personal conviction.
- —The rule Paragraph 6.75 of the JSE Listings Requirements obliges a listed company to announce changes to a director’s declaration within one business day.
- —Still open Whether the fines affect Maseko’s seat on the Shoprite board, which Shoprite has not said.
The Shoprite director Sipho Maseko was not personally convicted, the retailer says, after five of his companies paid R85,000 (about US$5,100) in tax-return fines. Shoprite told shareholders on Friday 23 October 2026 that no trial took place.
The National Prosecuting Authority (NPA) said on 9 October that the court convicted him in his capacity as a director of the five firms. For investors in the Johannesburg Stock Exchange (JSE) group, the Shoprite Holdings profile gives the wider company background.
What Shoprite Told Its Shareholders
Shoprite posted a notice on Friday 23 October after Maseko, an independent non-executive director, had to update the integrity information in his director’s declaration. The company said the five firms are dormant, non-trading investment companies.
The notice said: “No trial took place, no court made any finding on the facts, and Sipho himself was not convicted of any offence.” By agreement with the state advocate, the companies paid admission-of-guilt fines totalling R85,000 (about US$5,100).
The Case Behind the Notice
The NPA, South Africa’s state prosecution service, said the five companies failed to submit more than 85 tax returns over several years. The returns covered pay-as-you-earn (PAYE) employee tax, value-added tax (VAT) and corporate income tax.
The charges fall under section 234 of the Tax Administration Act, with 85 counts reported from the Palm Ridge Magistrate’s Court on 9 October. The companies are One Fountain Properties, One Fountain Industries, One Fountain Capital, Afrifund Advisory Services and Afrifund Investments.
Why the State and Shoprite Differ
An admission-of-guilt fine lets an accused pay a set amount without a trial. The NPA says the conviction was recorded against Maseko in his representative capacity as a director of the five firms.
Shoprite says Maseko was not convicted personally and that the R85,000 (about US$5,100) was paid by the companies. The two accounts differ on how to describe a conviction recorded in a director’s representative capacity.
Who Sipho Maseko Is
The Shoprite director led Telkom, South Africa’s largest fixed-line telecoms group, from 2013 to 2021 and ran BP Southern Africa from 2008 to 2012. He joined the Shoprite board in June 2023.
He also sits on the board of the JSE-listed group KAP, which issued a similar statement. Business press reports say he holds a stake in MultiChoice’s South African operations through Afrifund Investments, one of the five companies.
The JSE Disclosure Rule
Paragraph 6.75 of the JSE Listings Requirements makes a listed company announce changes to a director’s declaration within one business day. The NPA announced the outcome on Friday 9 October, and Shoprite published its notice on Friday 23 October.
The rule exists so that investors can judge the people who oversee their money. Shoprite said it issued the notice after Maseko told it of the change.
What It Means for US Readers
Shoprite shares trade mainly in Johannesburg, so most American investors meet the group through emerging-market funds. The R85,000 (about US$5,100) is small for a retailer of its size, and the notice says nothing about trading.
The Shoprite director case is a test of South African governance disclosure, which US funds weigh when they buy local shares. It also shows the tax authority and the NPA pursuing directors under Project Honey Badger, a joint drive against unfiled returns.
What Is Not Known
Shoprite has not said whether the board will review the Shoprite director’s seat or his committee roles. The company has also not published a split of the R85,000 (about US$5,100) between the five firms.
The exact date of the plea and the case number have not been released. It is also unclear whether Sonwabo Mtshazo, named by the state as a co-director, faces any action.
More: South Africa news in English, every day from The Rio Times.
Frequently Asked Questions
Was the Shoprite director convicted?
Shoprite says Sipho Maseko was not personally convicted and that no trial took place. The NPA says the court convicted him in his capacity as a director of five companies.
How much was the fine?
The five companies paid admission-of-guilt fines totalling R85,000 (about US$5,100). Shoprite says the money was paid on behalf of the companies.
What did the five companies do wrong?
The state says they failed to submit more than 85 tax returns for PAYE, VAT and corporate income tax over several years. They have since filed the outstanding returns so the tax authority can assess them.
Why did Shoprite issue a notice?
Maseko had to update his director’s declaration, and paragraph 6.75 of the JSE Listings Requirements requires an announcement within one business day. Shoprite published it on Friday 23 October 2026.
Does this affect Shoprite’s business?
Nothing in the notice points to an effect on trading, sales or profit. The company has not said whether the Shoprite director will leave the board.
Which other companies does Maseko serve?
He is also a director of the JSE-listed group KAP, which issued a similar statement. He ran Telkom from 2013 to 2021.
Sources: IOL, Shoprite says non-executive director was not personally convicted in tax case, 26 October 2026; Daily Investor, Five companies linked to Shoprite director paid admission-of-guilt fine to SARS, 23 October 2026; TimesLIVE, Former Telkom group CEO convicted over failure to submit tax returns, 9 October 2026; MyBroadband, Former Telkom CEO convicted after his companies failed to file 85 tax returns, 9 October 2026; EWN, Former Telkom CEO Sipho Maseko convicted over SARS unfiled returns, 9 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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