Speculation at full throttle about a replacement for Sars chief

Ahost of contenders have been identified to replace Tom Moyane as SA Revenue Service (Sars) commissioner after he was axed by President Cyril Ramaphosa.

Moyane and Ramaphosa are set to be locked in a court battle over the move for some time, but this is unlikely to block the president from appointing a permanent tax boss to “stabilise Sars”. It will not be surprising if Ramaphosa waits for the Sars commission of inquiry to submit its final report at the end of November to act.

In his terms of reference, Ramaphosa asked the commission, chaired by retired judge Robert Nugent, to pronounce on the suitability of the Sars governance arrangements and to make recommendations.

Moyane was suspended seven months ago on full pay. Ramaphosa was emboldened to fire him after Nugent recommended in his interim report that Moyane be axed and a new commissioner be appointed in order to stabilise Sars.

On Thursday, Ramaphosa acquiesced. He said acting commissioner Mark Kingon would remain in the post until he made a permanent appointment.

Kingon can serve until the end of December, when the 90 days prescribed in the Sars Act are up. He can then be appointed for another 90 days, if Ramaphosa wants to buy more time. Or he can make a permanent appointment.

Despite Moyane’s attorney arguing that Nugent is lobbying for Kingon to remain in the post, sources say he is hardly in the running. Former deputy finance minister Mcebisi Jonas has been named as the preferred replacement. Other contenders are senior Sars officials Hlengane Mathebula, Nathaniel Mabetwa and Edward Kieswetter as well as former deputy commissioner Ivan Pillay.

Mathebula and Pillay are likely to ruffle feathers should they be appointed. Pillay is a long shot since he is facing charges linked to the so-called rogue unit. Mathebula told the Sars inquiry how Moyane had a ‘‘hit list’’ of individuals he wanted investigated and removed.

Mathebula was then head of enforcement and said he was ‘‘uncomfortable’’ investigating people at his former boss’s behest. But he has yet to answer to allegations around his role in a unit headed by Yegan Mundie. Mundie was on suspension when he resigned from Sars in 2018 after he had allegedly acted against the law to aid key players in the illicit tobacco sector and launched spurious investigations and charges against Sars officials probing sensitive cases.

Ramaphosa will be keenly watched when he makes this appointment, but it is also critical for him to strengthen the legislation governing Sars and the conduct of its commissioner.

In his interim report, Nugent stresses that governance will need to be enhanced and the laws governing the appointment and firing of a commissioner tightened. In addition, there is a need for oversight by an independent body.

Without this overhaul, there is always a risk of another Moyane ascending to the helm at Sars, and another uphill battle to get rid of him.