Sars commissioner Tom Moyane does not accept that the KPMG report into the so-called rogue unit within the revenue service is flawed, despite the consultancy’s announcement on Friday that the conclusions, recommendations and legal opinions contained in the report cannot be relied upon.
Moyane came out guns blazing at KPMG on Monday morning. He criticised the company for giving him a mere two hours’ notice before proceeding with its announcement on Friday that came with the news that several top executives, including CEO Trevor Hoole resigned.
Moyane labelled KMPG’s conduct “unprecedented, unethical, unprofessional and unlawful”. He said Sars would proceed with legal action against KPMG for reputational damage including, but not limited, to civil action.
Sars is further going to report KPMG to local and international regulatory bodies. It further plans to report it to the Minister of Finance Malusi Gigaba, with the aim of having KPMG blacklisted and to stop all the work it is currently engaged in with other departments until it has been investigated and reviewed.
Moyane stated that all KMPG’s current work for Sars will be stopped immediately and everything it has done for the tax agency over the last decade is to be reviewed to determine the value for money it delivered.
Sars will further report KPMG to parliament’s standing committee on public accounts (Scopa) and standing committee on finances.
Moyane argued that KPMG handed a final copy of the report to Sars in January 2016 and thereby transferred all rights, title and interest, including intellectual property rights as well as moral rights and was§ therefore not entitled to issue the statement regarding the report.
He further stated that the disciplinary action against several Sars employees relating to the so-called rogue unit were based on the prior report by Advocate Sikhakhane SC and are therefore not impacted by the KPMG statement.
KPMG weighing options
KPMG on Monday said it is weighing its options after South Africa’s tax service announced plans to sue because of public statements the auditor made about a confidential report.
“The recent pronouncements by Sars are being taken into consideration,” KMPG spokesman Nqubeko Sibiya said in an e-mailed response to a request for comment.
ANC wants accountability
South Africa’s ruling party ANC on Monday said it wants KPMG to account for unethical conduct.
“…we are of the view that KPMG must account on its involvement in what appears to be politically-motivated immoral and unethical conduct,” the ANC said in a statement.