SARS crisis will hurt confidence
THE purge at the SA Revenue Service (SARS) continued this week‚ as politicians and commentators warned of dire consequences if ordinary taxpayers lost confidence in the tax-collection agency.
SARS deputy commissioner Ivan Pillay will find out today whether he is still on suspension.
Pillay was suspended by new SARS commissioner Tom Moyane on December 4, based on the findings of an investigation into claims of a rogue spy unit within SARS set up in 2007.
Some of the allegations reported in the past few months were that the unit had set up a brothel in Durban as a cover for officials working from home and had spied on a wide range of people, including taxi hitmen, SARS officials and politicians.
Pillay yesterday asked the Johannesburg Labour Court for an order to lift his suspension. The court reserved judgment until today.
However, the suspension of another SARS official, group strategic planning and risk executive Peter Richer, was lifted after an agreement between the parties was yesterday made an order of the court.
Nazeer Cassim SC, appearing for Pillay, told the court Moyane had not afforded Pillay a proper chance to respond to a notice of suspension, as required by his employment contract.
Moyane had informed Pillay on December 4 that he would be suspended based on the report prepared by Advocate Muzi Sikhakhane.
Cassim said Moyane had refused to consider a 34-page response that Pillay had prepared. "There was a breach of contract."
Martin Brassey SC, for SARS, said Pillay had endorsed and promoted a unit described by the media as a rogue unit whose activities were clandestine and possibly unlawful. Cassim denied this and said the unit in question was established by a previous commissioner.
He said the report prepared by Sikhakhane exonerated Pillay. He suggested Moyane lift the suspension and instead put Pillay on special leave.
On Monday Pillay's adviser‚ Yolisa Pikie‚ was also suspended‚ pending the outcome of a disciplinary hearing.
The tumult at the tax agency has seen resignations‚ suspensions or disciplinary action involving six senior employees in the past weeks.
There are concerns that perceptions of a crisis at SARS could potentially harm the relationship between the taxpayer and the agency‚ which has to be seen to be above reproach.
It is understood Pikie will face a range of charges including theft‚ conflict of interest‚ malicious damage to property‚ dishonesty and bringing SARS into disrepute. She declined to comment.
Meanwhile, the wrangle between state institutions over the control of South Africa's borders could be at the heart of some of the turmoil at SARS.
Lack of adequate controls encourages many economic crimes‚ including trade in illicit cigarettes‚ drugs‚ rhino horn and ivory smuggling.
The Border Control Operational Coordinating Committee controls this, but the lead agency for this committee was transferred from SARS to the Home Affairs Department, a move approved by the cabinet last week.
The recent exposés have illustrated the high stakes involved around border control. – Ernest Mabuza. Additional reporting by Natasha Marrian, I-Net
