Gordhan says SARS lacks accountability

• Relationship with Moyane reaches rock bottom • Co-operation from SARS weak

Finance Minister Pravin Gordhan has accused the top management of the South African Revenue Service (SARS) of “a lack of accountability and co-operation”.

This meant that his ministry was unable to verify the responses provided by SARS to a parliamentary question by DA finance spokesman David Maynier.

The question concerned the existence or otherwise of a specialised investigating unit within SARS, similar to the now disbanded high investigation unit, the “rogue unit”, which has been the source of a Hawks investigation into Gordhan in his former role as SARS commissioner.

SARS told the finance ministry that there was no such unit.

Gordhan’s qualification of his written reply marks a low point in the relations between SARS and its commissioner Tom Moyane with Gordhan and the Treasury as a whole.

Such a qualification is unprecedented in ministerial replies to parliamentary questions. It indicates that the relationship between the two men has reached rock bottom.

SARS’s denial was made to the ministry in November but does not accord with subsequent revelations that a secret investigation unit had in fact been set up to probe possible corrupt dealings between SARS staff and individuals in the tobacco industry.

SARS confirmed that such a unit was established, and said in its reply to the question that it had implemented a new operating model that dealt with noncompliance in high risk areas (including the illicit economy) through its compliance programme.

“SARS has a multifaceted approach to tackle the illicit economy, tax-related organised crime and tax evasion.

“This approach integrates its resources to deal with such matters. SARS also builds and maintains strong working relationships with South African law enforcement agencies,” it said.

“The SARS enforcement unit primarily deals with tax, customs and excise-related investigations, and is supported by other units within SARS, such as case selection, which identifies the cases; internal investigations, which investigates cases perpetrated by/with the assistance of SARS employees; and customs and excise investigations, etc.”

SARS said it worked with government departments to execute its mandate.

In reply to another question by Maynier regarding the bodyguards used by Moyane, Gordhan supplied the information given to him by SARS, again with the caution that his ministry had not been able to verify it.

The reply said Moyane did have protection service officers assigned to him. “SARS is a critical institution, which is tasked with revenue collection, including from high-profile individuals and businesses.

“Due to the nature of its mandate it is vital that the commissioner and SARS employees who are threatened or deemed

SARS told the finance ministry that there was no such unit

to have been threatened by individuals or syndicates under investigation are provided with personal protectors.”

The number of bodyguards was not provided as doing so represented a security risk.

The total cost of the bodyguards between April 1 2014 and end March 2017 would have been about R700,000.