Hore to testify at Nugent commission this week

BARRY Hore, the man who was singled out as a stumbling block to the illegal sale of cigarettes, alcohol, money laundering and illegal dealing in abalone, is due to testify before the Nugent Commission this Thursday.

Hore left Sars in December 2014, apparently after a fall-out with suspended Sars commissioner Tom Moyane after the latter introduced a new operating model for Sars.

According to evidence before the commission, Hore was allegedly Moyane’s target man because he had more powers as chief operating officer. When Moyane was appointed, he dismantled all of Hore’s powers as most of the Sars Units including the Large Business Centre (LBC), reported directly to him. The LBC’s primary duty was to ensure that multinational and big local companies were tax compliant. The commission also heard that before Moyane’s arrival, the LBC generated more than 30% of South Africa’s annual revenue collection. After Hore’s resignation, the commission heard how smuggling of cigarettes, abalone and alcohol, including the illicit flow of money, increased in South Africa.

The commission heard that the flow of illicit goods was precipitated by the new Sars operating model introduced by Moyane, who apparently asked Sars officials to turn their focus on small and medium companies who were allegedly not paying taxes.

According to the evidence, Moyane was advised by Bain Consulting Agency but that advice had severe consequences for Sars as big companies and multinationals began failing to comply with their tax obligations.

After Hore, Sars acting commissioner Mark Kingon is expected to lay bare the alleged rot at the revenue service authority since the appointment of Moyane in September 2014.

Kingon is one of the key witnesses billed to testify before the Nugent Commission, tasked to probe governance and administration at the revenue service since the appointment of Moyane.

The commission, chaired by retired Judge Robert Nugent, has lined up various witnesses from today until Tuesday next week.

Kingon is due to testify on Friday. He is one of the witnesses who made formal sworn affidavits to the commission detailing several wrongdoings during Moyane’s tenure.