With regard to companies doing business in excess of R300 000, but not registered for VAT, the Auditor-General reported that one company in KwaZulu-Natal was paid R423 203, and three companies were paid R1,6 million by the then Department of Minerals and Energy. An amount of R1,2 million was paid out by various departments to companies or CCs that were either registered but did not disclose the VAT amount or VAT number, or charged VAT when they were not registered for VAT.