Ramaphosa suspends SARS commissioner Moyane

SARS commissioner Tom Moyane was suspended with immediate effect late last night. According to the Presidency, President Cyril Ramaphosa has cited among his reasons the “deterioration in public confidence in SARS and public finances being compromised” due to the ongoing controversy at the tax agency under Moyane’s leadership. Ramaphosa said it was in the public interest to restore the credibility of SARS without delay. In a letter to Moyane, Ramaphosa said: “For the sake of the country and the economy, this situation cannot be allowed to continue, or to worsen.” It had been reported earlier that Moyane had refused to quit after he was asked to do so by Ramaphosa on Sunday night. Moyane said he would not resign, citing the upcoming revenue results announcement. According to sources, Moyane intended using the results announcement to show his success as commissioner despite the tough economic climate. Pressure has been building for Moyane to quit.

Factors include a R48-billion hole in revenue collection, and his leadership and handling of the allegations against his second-incharge, Jonas Makwakwa, which has come under increased scrutiny by parliament’s standing committee on finance. This comes on the cusp of an announcement by Moody’s on Friday on whether South Africa’s investment status will be downgraded. SARS issued a statement earlier yesterday saying that Moyane was being vilified unnecessarily by the media. Moyane announced the resignation of Makwakwa last week, after the SARS commissioner had shielded him for over a year. Moyane had been presented with a Financial Intelligence Centre report into suspicious and unusual transactions into Makwakwa’s personal bank accounts and that of his partner, Kelly-Anne Elskie, in May 2016. Following a year-long investigation by international law firm Hogan Lovells, Makwakwa was cleared of all charges and returned to work in December after more than a year on suspension. Makwakwa resigned last week after it was revealed that one of the companies channelling money into his personal bank accounts had been appointed as a debt collector by SARS. The Presidency said last night Finance Minister Nhlanhla Nene would announce the appointment of an acting commissioner for SARS. – BusinessLIVE