Humiliated Moyane looks for someone to blame
EMBATTLED SA Revenue Service commissioner Tom Moyane – humiliated by KPMG’s withdrawal of its report’s findings, conclusions and recommendations on the controversial SARS “rogue unit” – has blamed the accounting and auditing firm for the public relations disaster he faces.
It is now all-out war for Moyane‚ who has labelled KPMG’s behaviour “unethical” and has said he will do everything in his power to ensure the firm is blacklisted in South Africa and held legally accountable for the fiasco.
KPMG dropped a bombshell on Friday when it said its report’s findings‚ conclusions and recommendations‚ which were used to fire senior SARS investigative executives who operated the supposed rogue unit‚ were legally flawed.
The firm has, however, insisted that the body of its report is sound.
Moyane mandated KPMG to conduct the investigation following the Sikhakhane and Kroon commissions of inquiry into the “rogue unit”‚ which he said had found prima facie evidence of wrongdoing.
He said the Kroon Advisory Board had found that the establishment of the secret unit within SARS in 2007‚ which covertly gathered intelligence‚ was unlawful.
“The board went further to instruct SARS to charge employees involved and open criminal charges against those implicated in this act of crime,” Moyane said.
None of those implicated in the inquiries‚ including SARS senior executives Ivan Pillay‚ Johann van Loggerenberg and Pete Richter‚ were ever interviewed by the panels.
KPMG’s withdrawal has now seen parliament’s Standing Committee on Public Accounts saying it will summon
the firm to explain its withdrawal.
The withdrawal saw KPMG apologise to former finance minister Pravin Gordhan‚ who it had said had knowledge of the SARS high-risk investigation unit.
The report was used by Moyane to lay criminal charges against Gordhan.
Moyane insisted yesterday that the report‚ which he said was SARS’ confidential and exclusive property‚ was legally sound.
He said SARS was taken aback by KPMG’s unethical conduct.
“KPMG unilaterally announced the purported withdrawal of its report despite the existence of a service level agreement governing the relationship between the parties.”
He said KPMG had let him know via e-mail at the 11th hour what it was about to do.
“SARS sees KPMG’s conduct as nothing else but a dismal attempt to portray SARS‚ its leadership‚ and in particular [the] SARS commissioner, as incompetent‚ corrupt‚ inefficient and involved in a witch-hunt.
“This is the same narrative that has been perpetuated for years by some treacherous elements within society and the media.”
Asked who would be conducting the witch-hunt and what their agenda would be‚ Moyane had no explanation.
“One has to ask why KPMG is coming out of this slumber now when the final copy was given to us in January 2016 and they said nothing to us back then,” he said.
Asked about the Sikhakhane and Kroon reports‚ Moyane said the Sikhakhane report had come about because of rumblings within the media on the rogue unit allegations.
“The Sikhakhane report was something I inherited from the previous administration.
“Judge Kroon satisfied him with the findings of the Sikhakhane report.
“What the Sikhakhane inquiry unearthed gives one goosebumps. It’s just the tip of the iceberg of something far bigger.”
Asked if he was concerned that none of those accused of operating the alleged rogue unit had been interviewed before the reports were compiled‚ Moyane said no.
“They will have their day and time when they can come and explain their behaviour.”
On having it pointed out to him that the legal findings of SARS’ own inquiry into the rogue unit were copied and pasted into KPMG’s legal findings‚ Moyane said he did not know how that had happened.
“I cannot explain it. We only went to KPMG to get a second legal opinion.”
Defending the report‚ Moyane said KPMG’s final report came out after the disciplinary process had already happened.
The disciplinary actions were based on the Sikhakhane report.
“This therefore makes it sound. It [the Sikhakhane report] is not flawed, it confirms conclusively evidence of wrongdoing. “I acted to get the [rogue] unit disbanded. “I got it to cease to exist so that those running this unit can do their correct work‚ tax administration work.”
He warned the withdrawal of KPMG’s report did not vindicate those implicated in it.
During the media conference, Moyane had a message from KPMG’s spokesman‚ Nqubeko Sibya‚ read out.
Sibya’s SMS said only the findings‚ conclusions and recommendations were being withdrawn‚ and KPMG stood by everything else in its R23-million probe.