A taxing relationship

The acrimonious relationship between Finance Minister Pravin Gordhan and Sars commissioner Tom Moyane is undermining trust in the tax department. When Gordhan was head of Sars, the institution was widely respected as one of the best-run govern- ment departments. In Gordhan’s Budget speech, he expressed concern about a decline in tax revenue and the running of Sars, with revenue lagging behind the economy, leading to a R30 billion shortfall. Sars had to be efficient, trusted and credible, he said. In a later briefing, Gordhan said he and his deputy, Mcebisi Jonas, had four meetings with Sars management in recent weeks to find out what was wrong. This was followed by the leaking to the Mail & Guardian of 16 confidential letters which expose how bad the relationship is between the two men. Apparently, Moyane has asked President Jacob Zuma for help. The letters also reveal Gordhan warning Moyane that signing for and paying out his own salary increase and performance bonus was “un- ethical, immoral and illegal”. Moyane accused Gordhan of trying to usurp his powers and interfering in Sars. After the leaking of the letters yesterday, Moy- ane defended Sars’s performance. He said Gordhan shouts at him, refuses to shake his hand, and treats him as a nonentity. This is hardly surprising, as the head of Sars opened a case with the Hawks over a “rogue unit” that operated at Sars when Gordhan was the boss. The Hawks laid charges against Gord- han but these were later dropped. Clearly Moyane is floundering and the best intervention Zuma can make is to instruct him to defer to Gordhan. If he is unwilling to do so, he should be replaced by a competent apolitical professional who can work with the finance minister for the benefit of the country.