Makwakwa still under a cloud at SA’s tax agency

South African Revenue Service (SARS) second-in-command Jonas Makwakwa remained under suspension as the investigation into the “suspicious and unusual” cash payments made into his bank accounts had not yet been completed, the tax authority said on Monday.

The investigation is being undertaken by law firm Hogan Lovells. SARS commissioner Tom Moyane has indicated that SARS would act on its findings.

Makwakwa and SARS employee Kelly-Ann Elskie — his girlfriend — were suspended last year pending an investigation into alleged suspicious deposits into their bank accounts. Makwakwa, who is SARS executive for business and individual taxes, is alleged to have deposited R1.2m in various bank accounts between 2010 and 2016, while R450,200 was allegedly deposited into Elskie’s bank account.

SARS spokeswoman Janine Mqulwana said SARS had noted the decision by Corruption Watch to lay criminal charges against Moyane for failing to report alleged fraud and corruption committed by Makwakwa and Elskie to the police, as required by the Prevention and Combating of Corrupt Activities Act.

Corruption Watch also claims Moyane breached sections of the Financial Intelligence Centre Act, which prohibits the disclosure of suspicious and unusual transactions to implicated persons.

Corruption Watch executive director David Lewis said it was public knowledge that Moyane had informed Makwakwa and Elskie about the allegations against them. Corruption Watch wrote to Moyane in October raising concerns about his handling of the matter.

Moyane responded by stating that the Hawks were looking into allegations of racketeering and money laundering against the two employees.

The Financial Intelligence Centre recommended in a report sent to Moyane in May that the “suspicious and unusual” cash payments (about 78) into Makwakwa’s bank account be investigated to determine if they were “proceeds of crime

REPORT BASED ON BANK RECORDS FOR 11 DIFFERENT BANK ACCOUNTS

arising from corrupt activities” or “acts of money laundering”. The report was based on bank records for 11 different bank accounts as well as camera footage from banks.

Moyane took action only at the end of August after the large cash deposits were reported in the media. Makwakwa, who was head of the Large Business Centre — the biggest revenuegenerating unit in SARS — was suspended in mid-September.

Moyane has insisted that he followed correct procedures in dealing with the matter.