Registered users can save articles to their personal articles list. Login here or sign up here

Sars dismantled by Moyane, report says

Senior managers were driven out or marginalised and those appointed by Moyane to replace them were compliant to his demands

Governance at South Africa’s tax-collection agency was “dismantled” under former Commissioner Tom Moyane, a inquiry into management at the institution found.

Senior managers were driven out or marginalised and those appointed by Moyane to replace them were compliant to his demands, according to the final report of the Nugent Commission of Inquiry into the South African Revenue Service released on Friday.

Cyril Ramaphosa suspended Moyane in March, soon after replacing Jacob Zuma as president with a pledge to end graft in the government and state companies. Moyane, who was fired last month on the recommendation of the commission, was closely allied to Zuma, whose almost nine-year tenure was marred by scandal. The agency repeatedly missed revenue-collection targets after Moyane took over in 2014.

Moyane “arrived without integrity and then dismantled the elements of governance one by one,” the panel, led by retired Judge Robert Nugent, said in its 200-page report. “This was more than mere mismanagement. It was seizing control of Sars as if it was his to have.”

Moyane has denied wrongdoing and is contesting his removal and allegations against him in court. His lawyer said the commission overstepped its mandate, according to News24.

Bain probe

Ramaphosa’s office said the president was studying the report and recommendations, which include possible prosecution in the awarding of contracts with Bain & Co. The local unit of the Boston-based consultancy company was hired by Moyane to assist in restructuring the tax agency.

Bain removed the head of its South African business in September and started an independent probe into its work for Sars. It will also repay money earned from its contract, the company said.

Opposition parties and former Sars employees have accused Moyane of deliberately weakening the tax agency to protect senior politicians who failed to declare all their income — claims he denies.

Finance Minister Tito Mboweni on Friday reappointed Mark Kingon as acting tax commissioner for a further 90 days. The government is now expected to seek applicants for the permanent position.

© 2018 Bloomberg L.P

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   7

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up for FREE

In the process of dismantling SARS, Moyane also gave his good mate Patrick an R80 million ‘gift’, using Gartner as the pawn. who should have known better, but were greedy for profit?
Now Gartner must refund their obscene R200 million they received (less of course, the ‘facilitation fee’ of R80 million given to the Patrick, the ’employment equity partner’).
Very embarrassing for Gartner. Can we place them in the same mold as KPMG, Bain, SAP and McKinsey? – I think so? And I dont think any future consulting work will be performed by Garter in SA? And hopefully those that worked for Gartner on SARS will also be dismissed?

Thank you President Ramaphosa

SARS is key to the survival of South Africa

I’m not so sure. Cyril (and Pravin) understand that that is where their money to waste and steal comes from; the SA taxpayer. So in order to keep spending like a drunkard, they need the cash to keep rolling in. Hence their enthusiasm for “efficiency” at SARS; nothing to do with SA’s economic health; in my opinion of course.

Although Cyril should be commended for appointing the Nugent Commission, and for actually firing someone, the fact that SARS could be destroyed in a mere 3 years shows that Cadre Deploymenr has made the state vulnerable.

The time has come for a clear line to be drawn between public servants at all levels, and politicians.

Just watch. Those who think we are recovering. Within 10 years, South Africa will go through this again.

SARS dismantled by Moyane, the ANC dismantled by Zuma and SA dismantled by the ANC. A great tragedy has unfolded in front of us.

Load All 7 Comments
End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
Insider GOLD
ONLY R63pm

Moneyweb's premium subscription is a membership service which will give you access to a number of tools to take charge of your investments.
Or choose a yearly subscription at R630pa - SAVE R126

Get instant access to all our tools and content. Monthly subscription can be suspended at any time.

Podcasts

GO TO SHOP CART

Follow us:

Search Articles:Advanced Search
Click a Company:
server: 172.17.0.2