Payout details for SARS trio disclosed
CAPE TOWN — The South African Revenue Service (SARS) paid R8.5m in restraint of trade settlements to three of its former executives who left during the furore over the so-called rogue unit.
The 18-month long restraints of trade were paid to former deputy commissioner Ivan Pillay, who received R3.9m, and to group executive for strategic planning Peter Richter, who was paid R3.77m.
The two men were implicated in setting up the unit and suspended by SARS commissioner Tom Moyane in December 2014. They resigned in May 2015 after a protracted disciplinary inquiry. The terms of their packages were not disclosed at the time.
In addition, the annual report of the tax authority tabled in Parliament on Wednesday disclosed that R858,723 was paid in a sixmonth restraint of trade settlement to former head of tax and customs enforcement Gene Ravele, who also resigned in 2015 ahead of a threatened suspension related to the investigative unit.
The latest scandal to rock SARS has been last week’s suspension of chief officer for business and individual taxes Jonas Makwakwa over “suspicious and unusual” transactions pending the outcome of a probe into allegations of misconduct. Makwakwa allegedly received unexplained cash deposits and bank transfers amounting to R1.2m between 2010 and 2016. Deposits of R450,200 were also made into the bank account of his girlfriend, Kelly-Ann Elskie, in December 2015. She is a SARS employee.
Moyane received a report from a banking regulator in May, detailing the allegations against Makwakwa, and has acted against him after disclosures about the transactions in the Sunday Times. SARS spokesman Sandile Memela on Wednesday said the tax authority would follow due process to investigate these serious allegations.
“SARS has appointed an independent and reputable international law firm, Hogan Lovells, to investigate the matter,” he said.
In his foreward to the report, Finance Minister Pravin Gordhan noted that SARS as an institution was very respected, but this could not be taken for granted.
“The public and various stakeholders are today fast losing trust in government and the private sector elite,” he said.
Moyane, who has butted heads with the finance minister, in his statement expressed appreciation to Gordhan for his leadership and support.