Writing on the wall for SARS’s Moyane

• Axing from tax agency set to be put to Cabinet • Jonas mooted as interim commissioner

South African Revenue Service (SARS) commissioner Tom Moyane could find himself out of a job in a matter of days.

Business Day understands that the issue of Moyane’s removal from the tax agency is set to be put to the Cabinet and that his departure is “imminent”.

This comes as Moyane, in a hastily convened media briefing on Wednesday, announced that his second-in-charge, Jonas Makwakwa, had resigned from SARS for “personal reasons”.

President Cyril Ramaphosa announced during his maiden state of the nation address an inquiry into the running of SARS, but insiders said that Moyane’s handling of the Makwakwa matter could see him out of office even before the inquiry begins.

It is understood that there are discussions taking place about an “interim commissioner” to take over from Moyane, with speculation that former deputy finance minister Mcebisi Jonas could take up this post.

Chairman of Parliament’s portfolio committee on finance Yunus Carrim, reacting to Makwakwa’s resignation, expressed concern about the “unacceptable way” SARS had managed the matter.

Moyane and Makwakwa have been under increasing pressure over their handling of a Financial Intelligence Centre (FIC) report, dating back to May 2016, which found about R1.2m in suspicious and unusual transactions into Makwakwa’s bank account and that of his partner, Kelly-Anne Elskie.

This was compounded by revelations that Makwakwa had contracted New Integrated Credit Solutions (NICS) to help SARS with its debt collection.

NICS was listed in the 2016 FIC report on the dodgy transactions as the firm that had channelled money, which eventually reached Makwakwa’s personal bank account.

An investigation into the allegations surrounding the appointment of NICS would continue and was referred to the Hawks, Moyane said. He said Makwakwa had been on the verge of another suspension before his resignation.

Moyane has been accused by opposition parties and Parlia-

ment of shielding Makwakwa, who was at the tax agency for 22 years and is the last executive with a solid grasp of the running of SARS.

Sources in SARS said Moyane should resign instead of being asked to leave, but he was adamant on Wednesday that he was not going anywhere.

The FIC report said it was critical to investigate the allegations as the transactions could have been proceeds of crime or money laundering.

The report found that deposits into Makwakwa’s account had increased 152% from 2010 to 2015, and flagged 75 suspicious cash deposits in the same period.

An investigation by law firm Hogan Lovells recommended disciplinary action, but the firm itself admitted that it had not probed the transactions.

The disciplinary process saw Makwakwa face six charges — again, none were linked to the allegations in the FIC report — yet he returned to work and was cleared of all charges after almost a year-long suspension.

Moyane said the Makwakwa matter should have been handled better. “As the commissioner, I would be negligent if I did not admit that the incidents surrounding the issues on Mr Makwakwa have taught us valuable lessons.

“I am sure there are areas that we could improve on and could have handled better.”

His position at SARS has been further weakened by the announcement of a tax revenue shortfall of R48.2bn in former finance minister Malusi Gigaba’s budget in February. Worse news is that the deficit shows a yearon-year increase. In 2017, the revenue deficit was R30.7bn, then minister of finance Pravin Gordhan announced in the February 2017 budget speech.

Despite this, Moyane said he felt secure in his job as commissioner, a position he has held for the past three years after being appointed by former president Jacob Zuma in 2014.

“I am firmly rooted in this organisation. I don’t feel any insecurity,” he said. “I am emboldened by the fact that the journey is [still] long and we need to meet the tax target set by the minister of R1.217-trillion. In the last three years of tenure in my office I have never failed to meet the target and therefore I see no reason whatsoever to feel insecure,” Moyane said.

Earlier this week, there was a heated meeting between Moyane and Parliament’s standing committee on finance, which led to Moyane agreeing to hand over the Hogan Lovells report and a report by advocate Terry Motau on the disciplinary hearing which cleared Makwakwa of wrongdoing.

Despite Makwakwa’s resignation, these documents, as well as his tax record, would be sent to the committee, Moyane said.