SARS goes to court to terminate LTC contract

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In a statement on Thursday, 20 October 2016, the revenue service said the urgent proceedings at the High Court were instituted due to Lekgotla Trifecta Consortium’s (LTC) failure to disclose the family ties between its director Nhlamulo Ndlhela and SARS Commissioner Moyane.

“SARS wishes to announce that it has instituted urgent proceedings at the High Court to immediately terminate the contract between SARS and LTC. This is to properly comply with the obligation the law imposes on organs of state to pro-actively raise and resolve procurement irregularities,” said SARS spokesperson Sandile Memela.

SARS had previously announced that it intends to approach the High Court with the aim to declare the contract between SARS and LTC invalid should the parties fail to do so amicably.

“This follows LTC’s failure to declare the potential conflict of interest between its director Mr Ndlhela and SARS Commissioner, Mr Moyane, as this constitutes material irregularity and breach in the award of the tender,” said Memela.

The court proceedings are intended to interdict LTC from any further steps to implement the master service agreement and any and all service request agreements concluded between SARS and LTC.

“It is SARS’ position that TLC’s failure to disclose the familial relationship between its shareholder Mr Ndlhela and the Commissioner constitutes material breach and irregularity in the award of the tender.

“This action must be seen and understood from SARS uncompromising and beyond reproach manner in keeping with its Constitutional and statutory duty to maintain a high standard of professional ethics, accountability and transparency in its administration as well as the prevention of possible irregular expenditure and prejudice to the financial interest of the state.”

As the matter is now the subject of legal proceedings, and out of respect to the pending judicial process, SARS said it does not intend making any further comment on the merits or demerits of the matter, said the revenue service.