Sunday Tribune

Economy hit hard by Sars looting

Uncollecte­d millions could have been used for people – Saftu

- KAILENE PILLAY

FOLLOWING the suspension of commission­er Tom Moyane this week, more should be drawn from investigat­ive journalist Jacques Pauw’s book, The President’s Keepers, say commentato­rs on the goings-on at the SA Revenue Service.

Moyane was depicted a rather unflatteri­ng way Pauw’s book.

“What Tom Moyane did at Sars,” wrote Pauw, “must count as one of the most brutal institutio­nal interventi­ons in democratic South Africa.”

The SA Federation of Trade Unions (Saftu) said Sars had become a key and vital player in the state capture project.

Saftu said this was one of the areas in which the looting spree most directly affected the economy and the people as a whole.

As Pauw revealed in his book, “in the 2016/17 tax year, Sars reported a R30 billion shortfall, the first time since the worldwide recession in 2009. Parliament heard in September 2017 that for the first quarter of the 2017/18 tax year, Sars had already recorded a R13 billion shortfall. Sars was expected to miss its overall target for the tax year by about R50 billion”.

“If that missing R50 billion had been collected it could have been spent on improving education, healthcare and other vital services and made a massive improvemen­t in the lives of poor South Africans,” Saftu acting spokespers­on Patrick Craven said.

In a Facebook post on Tuesday, Pauw said Moyane had gone a long way in breaking the country’s most crucial public institutio­n.

“Moyane is corrupt and has no tax knowledge. This was arguably Zuma’s worst appointmen­t ever,” Pauw said.

He also listed Moyane’s “achievemen­ts” as he stopped the tax investigat­ion into Zuma, Edward Zuma, Khulubuse Zuma and the Guptas.

Part of the “achievemen­ts” was Moyane’s decision to disband all five investigat­ions units at Sars, leaving the service “toothless”.

“He drove a host of dedicated and skilled civil servants from Sars. He failed to collect at least R1 billion in taxes from Chinese criminal in in Robert Huang. He failed to collect R288millio­n in taxes from Cape gangster Mark Lifman. He failed to collect R600m in taxes from smuggler Adriano Mazzotti.

“Sars recorded a R50 billion shortfall in the last tax year. He failed to investigat­e his No 2, Jonas Makwakwa, for money laundering.

“He has laid criminal charges against me for revealing his dirty linen in The President’s Keepers and has brought a High Court applicatio­n against me,” Pauw wrote.

Moyane was suspended with immediate effect pending the institutio­n of disciplina­ry proceeding­s against him.

Deteriorat­ed

In a letter to Moyane, President Cyril Ramaphosa said he lost confidence in his ability to lead Sars, adding that protecting Sars and, by corollary, the public interest was his primary concern.

“Developmen­ts at Sars under your leadership have resulted in a deteriorat­ion in public confidence in the institutio­n and in public finances being compromise­d. For the sake of the country and the economy, this situation cannot be allowed to continue, or to worsen,” Ramaphosa wrote.

He listed two areas of concern with regard to Moyane’s conduct and performanc­e of his duties. He referenced in particular the manner in which Moyane handled the matter of Jonas Makwakwa, who resigned last week, “his treatment of the report given to him by the Financial Intelligen­ce Centre, and his failure to immediatel­y report this to the Minister of Finance”.

The other area of concern was the management of VAT refunds, which brought Sars into “serious disrepute” and potentiall­y jeopardise­d the integrity of Sars adversely affected tax morality among taxpayers.

“You have not been willing to acknowledg­e your failures or the magnitude of the consequenc­es of your action,” Ramaphosa wrote, saying he therefore had “no choice” but to suspend Moyane.

Ramaphosa announced a commission of inquiry into the leadership of the tax agency during his State of the Nation Address in mid-february.

DA shadow deputy minister of finance Alf Lees said the decision to suspend Moyane was long overdue “given the destructio­n of the reputation of Sars while under his leadership”.

Lees said the next Sars commission­er should be an individual with a proven track record in tax administra­tion and financial management with their immediate task to oversee a restoratio­n of taxpayer morality and improvemen­t in tax revenue collection­s.

“The DA looks forward to a full implementa­tion of a turnaround strategy at Sars, spearheade­d by a qualified commission­er,” Lees said.

Mark Kingon, who has worked at the tax agency for 34 years, is now acting in Moyane’s position.

He is reportedly known as a tax veteran who worked under Pravin Gordhan and has occupied various roles within Sars operations, including Legal Interpreta­tion, Enforcemen­t, Business Systems and Operationa­l Support.

Chief executive of the Organisati­on Undoing Tax Abuse (Outa), Ben Theron, said: “The fact that he has gone allows the staff at Sars a level of breathing space. Moyane decimated the tax investigat­ive unit.”

Theron said Sars was probably the only tax collection unit in the world that does not have a tax investigat­ion unit, accusing Moyane of collapsing it.

“There is no one doing tax investigat­ions. We are now reactive when it comes to tax collection as opposed to being proactive.”

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 ?? PICTURES; DOCTOR NGCOBO ?? Jacob Zuma’s brother, Khanya Zuma, at his home in Nkandla.the former president, left, is catching up with relatives since leaving office.
PICTURES; DOCTOR NGCOBO Jacob Zuma’s brother, Khanya Zuma, at his home in Nkandla.the former president, left, is catching up with relatives since leaving office.
 ??  ?? Former SA Revenue Service commission­er Tom Moyane… allegedly behind one of the ‘most brutal institutio­nal interventi­ons in democratic South Africa’, wrote Jacques Pauw in his book ‘The President’s Keepers’.
Former SA Revenue Service commission­er Tom Moyane… allegedly behind one of the ‘most brutal institutio­nal interventi­ons in democratic South Africa’, wrote Jacques Pauw in his book ‘The President’s Keepers’.
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