The SA Revenue Services and the Hawks raided the home of controversial Durban tycoon Sbu Mpisane on Wednesday morning.
"I can confirm that our guys are there. We are carrying out search and seizure," said Sars spokesperson Adrian Lackay.
Mpisane, a former Durban metro police officer, came under scrutiny when it emerged he and his wife Shawn were super-rich with a fleet of expensive cars including a Rolls Royce Phantom and Lamborghinis.
He was still a police officer when the story broke, with a salary of less than R 15 000.00 per month and raised eyebrows by arriving to work in a Lamborghini and living in a R 17 million
luxurious La Lucia home.
In 2009, it was reported that the couple had received R219m from the eThekwini municipality to build low-income houses on 4 500 sites in Umlazi.
Just three weeks after receiving R30-million from the eThekwini municipality, high-flying Durban couple S'bu and Shawn Mpisane have halted the completion of RDP housing projects in Umlazi, apparently because they have no money to continue the work.
However, the National Home Builders' Registration Council found defects in more than 1 000 of 3 000 houses built by Zikhulise Cleaning and Transport, owned by the Mpisanes.
Of the defects, 30% were serious and would require major renovations.
The Mpisanes are known for their lavish parties, which are attended by politicians and celebrities. Guests included national police commissioner Bheki Cele.
On Monday, workers of Shawn Mpisane's Zikhulise Cleaning, Maintenance and Transport company, as well as those employed by sub-contractors, in Umlazi, were told to go home because the company allegedly had no money to continue their work.
Mpisane had told him her company had received no money from the municipality since October.
Contradicting this, however, documentary records in The Mercury's possession indicate that more than R50 million was paid by the municipality to Zikhulise in November and December.
Municipal manager Michael Sutcliffe confirmed a total of "around R300 million" had been paid to Zikhulise over 18 months and said the project had been completed in mid-December.
Nyawose said thousands of houses were still under construction or to be built in Umlazi, contradicting Sutcliffe's statement that all work had been completed.
The Mercury has documentary proof that a total of R219 930 939 was electronically transferred from eThekwini to Zikhulise in 2009. In December alone, four payments totalling about R30 million were made.
Sutcliffe explained that some funding was usually paid in advance. "Contractors submit claims based on work done; the city's professional team verify that and if such work has been done, payments are then made," he said.
But just months after construction, some of the houses were crumbling, the houses were not plastered or painted. Some had no toilets, taps, baths or showers.
The Million Buck Couple