An explosive BDO report into one of the corporate stores owned by Spar has revealed instances of VAT fraud, sparking a bitter confrontation between the group and the potential suitor of the corporate store.The report, dated September 26 2025 and seen by Business Day, lays bare the lax bookkeeping at Spar’s Bloed Street Tops store.The professional services firm found unreliable financial information that does not tie to financials and inflated gross profit that is not indicative of underlying stock and sales.(Dorothy Kgosi) Another damning finding is that the store underdeclared output sales and overdeclared input sales, leading to it shortchanging the fiscus.“VAT output declared on provisions is not in line with the VAT Act … the entity declares VAT on GRV [goods received voucher] items and not expenses in the income statement,” the BDO report noted.One of the areas flagged is stock price manipulation and rolling over of stock to hide losses as key risks facing the store.The report was commissioned by business person Amaan Sayed as part of due diligence to buy the store. The deal collapsed, with both parties stating different reasons for what led to the collapse.Sayed said the findings on the management of the store point to a broader problem in the group and the management of its stores. He has since referred a complaint to the JSE, the South African Institute of Chartered Accountants (Saica) and the Companies and Intellectual Property Commission (CIPC) for investigation, all of which are now looking into the matter.Spar chair Mike Bosman. (Supplied) He is singling out Spar chair Mike Bosman for allegedly ignoring warnings about fraud, corruption and accounting irregularities across the group’s corporate store network.The complaints, filed on April 10, which Business Day has seen, allege that Bosman failed to discharge the governance duties required of both a chair of a listed company and a registered chartered accountant. In the complaint, Sayed alleges that an improper stock formula applied across several corporate Spar and Tops stores in March 2025 artificially inflated opening stock figures and that VAT fraud arising from falsified supplier documentation extended well beyond the single store examined by BDO.The most serious regulatory consequence he is seeking is a delinquent director declaration from the CIPC, a formal legal finding under the Companies Act that would bar Bosman from serving on any company board.The JSE said it could not comment on the matter, while Saica said it is reviewing Sayed’s complaint. Spar said it could not respond to the contents of the BDO report due to a nondisclosure agreement entered into by the parties. However, it said the report is not reflective of its broader store network, as Sayed suggests.The JSE-listed entity said its own internal review found no reportable irregularities.“Saica has reached out for comment regarding Mr Sayed’s allegations, and a response is due to be submitted. Spar is satisfied that there is no basis for Mr Sayed’s complaint to Saica,” the group said.“Mr Sayed’s allegations follow a failed attempt to purchase a Spar corporate-owned store, Spar Bloed Street, which he formerly owned. His retailer application for this store was declined by the Spar Guild in accordance with its own governance mandate and in the interest of its members because he failed to meet the requisite criteria.”Sayed was rejected by the guild in March.Spar said the guild cited as its reasons for declining the application “Mr Sayed’s poor credit history, prior retail store ownership leading to a significant loss to Spar due to a failure by him to abide by credit terms and subsequent significant debt write-offs and actions that brought the Spar brand into disrepute”.Sayed holds a different view, saying he previously acquired stores for which the financial information provided did not reflect the underlying performance. Sayed alleges that this led to substantial losses and a dispute with the group.He argues that this earlier experience informed his warnings and reinforces his claim that the issues raised in the BDO report are not isolated.Spar tried to keep the lid on the contents of the BDO report becoming public. To this end, Spar, through its attorneys, wrote to Sayed, demanding he retract the submissions made to regulators and confirm the destruction of all related material, including the BDO report.The letter warns of defamation proceedings and invokes confidentiality obligations under a nondisclosure agreement. Spar said the complaints were not made in good faith and were instead motivated by dissatisfaction after Sayed’s unsuccessful application to join the Spar Guild.It also maintains that the BDO report relates only to a single store and does not support broader claims.Sayed, through his lawyers, rejected those demands. His legal representatives, Petker & Associates Incorporated, argue that reporting suspected irregularities to regulators cannot constitute defamation and that the complaints were based on findings from a credible independent audit.The lawyers said the information raises issues of public interest and should be investigated by the relevant authorities. They also opposed the request to destroy the material, saying it is relevant to potential wrongdoing.