Moyane may challenge inquiry
Suspended SARS boss faces charges
The charge sheet presented to suspended SA Revenue Services commissioner Tom Moyane indicates that he actively impeded the investigation into suspicious transactions in the bank account of his second-incharge, Jonas Makwakwa, identified by a Financial Intelligence Centre (FIC) report.
It also revealed that Makwakwa was permitted to return to SARS after there remained glaring unanswered questions in the findings of the investigation into the transactions.
Moyane was suspended last month by President Cyril Ramaphosa, who indicated he had lost confidence in the SARS commissioner over his handling of the Makwakwa matter. This was about a week after Makwakwa resigned under a cloud when it also emerged that a service provider appointed by SARS was among the companies listed as making a payment into his personal bank account in the FIC report, conducted by audit firm PricewaterhouseCoopers.
Moyane faces charges of misconduct in violation of his duties and responsibilities linked to his handling of the allegations against Makwakwa, unauthorised bonus payments, misleading parliament and instructing a SARS official not to cooperate with a KPMG investigation.
Moyane’s legal team is preparing to possibly approach the courts to challenge the disciplinary inquiry, his attorney Eric Mabuza confirmed yesterday. Before his suspension, Moyane wrote to Ramaphosa threatening court action – he also requested that the president “urgently” set up an inquiry into the running of SARS.
According to the notice of disciplinary inquiry signed by Ramaphosa and sent to Moyane, the SARS commissioner had failed to ensure that an investigation into possible tax evasion or other breaches of the Tax Administration Act by Makwakwa and his partner Kelly-Anne Elskie was conducted by SARS – the only effective entity which could probe such issues.
The notice further indicates that Moyane failed to cooperate with PwC which was denied access to the couple’s laptops and cellphones. The auditing firm was expected to probe the actual transactions.
The PwC report also details nine additional points requiring further action and investigation, which SARS ignored.
The charges against Moyane also include that he failed to provide PwC with records, documents and systems, he also failed to ensure PwC was afforded access to all Makwakwa’s bank accounts for the purpose of the investigation and failed to act on PWC’s recommendation for further investigation into whether Makwakwa violated foreign exchange regulations.
“Your gross mishandling of the [FIC] report and the issues arising therefrom brought SARS into disrepute and caused serious damage to the credibility and legitimacy of the institution,” the notice of disciplinary inquiry reads.
Ramaphosa is also taking Moyane on for his failure to obtain approval from former finance minister Pravin Gordhan for bonus payments to members of his executive as required by the SARS Act. This failure resulted in the auditorgeneral finding against the institution for “internal control deficiency and irregular expenditure”, causing “reputational harm” to SARS. The disciplinary inquiry is to be chaired by retired Constitutional Court judge Kate O’Regan.