PRETORIA More of Sars’ shady dealings revealed
The unit was conducting probes outside of ambit of laws governing Sars to deal with those opposed to illicit cigarette dealing
SENIOR South African Revenue Services (Sars) officials who blocked the flow of counterfeit cigarettes and alcohol into the country were suspended for rooting out corruption, the Nugent Commission into the tax authority heard yesterday.
This was the damning evidence of Yousuf Denath, the senior manager of fraud investigations at Sars, who testified about his own humiliation before the Nugent commission, chaired by retired Judge Robert Nugent, in Pretoria.
He said Sars had its own “state capture” which was allegedly masterminded by the suspended commissioner Tom Moyane.
In his testimony, Denath said Moyane, in March 2016, established his own “rogue unit” known as the Tobacco Task Team.
He said some of the people who were seconded to the unit had previously worked under him in the anti-corruption unit.
“They were seconded with their posts and benefits to the commissioner’s office,” Denath said.
He said the unit was not investigating tobacco smuggling but was conducting probes outside the ambit of the laws governing Sars to deal with those in Sars opposed to illicit dealing in cigarettes, alcohol and flow money. “It was a fearful situation,” he said.
According to him, it came as no surprise on August 10, 2016, when a memorandum was in circulation accusing him and two others of colluding with big tobacco industry players – allegedly at the expense former president Jacob Zuma’s son, Edward, and his business partner, Yusuf Kajee.
“In the memorandum, I was accused of colluding with Forensic Security Services, owned by British American Tobacco, to undermine small players in the tobacco industry such as Yusuf Kajee and Mark Lifman. Kajee owned Amalgamated Tobacco and Edward Zuma was his partner,” Denath said.
He said since those allegations surfaced, Sars flouted processes of instituting investigations into the matter.
They appointed Goby Makhanya, who was based at the Sars’ debt unit in Durban,to investigate him because Denath’s senior manager in Pretoria refused to do so.
The commission heard that on October 26, 2016, Makhanya obtained permission from Hlengani Mathebula – Sars head of governance and international relations – to download the emails of all implicated officials, including Judge Vas Soni’s email.
Denath said Makhanya wiped his laptop and deleted all information implicating Sars senior officials in corrupt acts.
Denath said Sars spent R3m to kick him out of his job, but the CCMA ruled in his favour in July this year.
The commission continues today.