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    Cat set among the pigeons at the tax office

    Pravin Gordhan's return as the political head of the SA Revenue Service (SARS) is causing sleepless nights for some. The appointment of its new commissioner, Tom Moyane, in September last year was followed by what was described as a purge of 10 senior officials, most of them put in place by Gordhan.
    Cat set among the pigeons at the tax office
    © Olivier Le Moal – za.fotolia.com

    Moyane suspended former SARS deputy commissioner Ivan Pillay and former head of strategy and planning Peter Richer over a report on an investigative unit established while Gordhan was head of the institution from 1999 to 2009.

    The unit was at the centre of a power struggle in SARS, and Moyane issued a statement announcing the suspensions last December, declaring that the "covert unit" was unlawful and had been disbanded.

    Pillay and others parted ways with the organisation with a cloud hanging over them as further articles on the "covert" unit, based on a KPMG report surfaced in the media following their departure.

    According to sources, Gordhan wrote to auditors KPMG complaining that he had not been questioned or approached. The report had indicated there was no evidence that he knew about the unit but said he "ought to have known".

    KPMG sent the letter on to SARS's attorneys, and Moyane - weeks before Gordhan's appointment - responded to it. Insiders say the letter was "harsh" and accused Gordhan of being "opportunistic".

    It must have been decidedly uncomfortable then when on Sunday night President Jacob Zuma, who appointed Moyane, announced the return of Gordhan to the helm of the finance ministry.

    Gordhan accused SARS of attempting to impugn his integrity. Now Moyane is reporting to Gordhan, who on Monday described the effort it took to build the credibility and integrity of the institution. He emphasised the hard work that went into changing the tax compliance culture in the early 2000s in a country in which dodging the taxman was fondly discussed around the braai.

    SARS faced a turbulent period in the past year.

    It was racked by reports of a scandalous love affair; a covert unit which spied on the president and ran a brothel; attempts by organised crime networks to infiltrate the agency; back-stabbing employees; and political interference.

    Insiders are expecting a backlash from Gordhan after months of aspersions cast over his long tenure as the commissioner of the institution.

    Gordhan met Moyane on Wednesday after taking office. A meeting is expected to take place between Gordhan, Moyane and Zuma in the coming week.

    It is likely that Gordhan's deputy, Mcebisi Jonas, may be tasked with handling the SARS issue.

    But in a message that appeared to be aimed at Moyane and the heads of other state enterprises on Monday, Gordhan said he would not allow SARS to be further tarnished.

    "Don't play with state institutions because at the end of the day it's not the current generation that suffers only. In an institution like SARS or the Treasury or the Reserve Bank, you affect generations to come," he said.

    "One of the things South Africans should not be too gleeful about, and should be worried about, is when a crucial institution like a tax administration is going to be damaged reputationally or institutionally."

    The country was in a solid position to pay for social grants because of the fiscal space created by the growth in the economy and the change in tax administration and tax compliance. "We should collectively defend the integrity of these institutions and be very careful about spreading unsubstantiated rumours," he said.

    Source: Business Day

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