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Johannesburg – As Sars suspended commissioner, Tom Moyane demands that the Sars investigation be halted, the numerous testimonies of the investigation provided a frightening picture of questionable changes at the tax agency . The Sars investigation was appointed by President Cyril Ramaphosa to investigate tax and governance issues within the organization.
The president's decision to appoint the commission was largely motivated by the agency's growing scandals and billions in lost profits. The commission began its work last week but will resume hearing more witnesses in August. The commission, chaired by Judge Robert Nugent, heard testimony from 13 witnesses working in Sars.
What has become evident is the change of culture at the agency after the appointment of Moyane in 2014, replacing interim commissioner Ivan Pillay. Interviewees painted a grim picture of how staff members operated in a climate of fear as various incidents and changes at the agency indicated a cultural shift.
Culture of Fear
The mbadive exodus of senior executives, with significant institutional memory, over the last two years and the reason for this has been attributed to the leadership style from Moyane. Former Sars Commissioner Pravin Gordhan was the first to take a stand and explain the systems in place prior to his departure. Gordhan also questioned the restructuring of Moyane, which led to a tense relationship between the two.
Thebeletso Seremane, who worked on the Sars Code of Conduct, said that she and a number of employees were demoted during the restructuring of the agency. Seremane also said at the survey that people who were not qualified for positions were randomly promoted.
She pointed to the promotion of Kelly-Anne Elskie, who had been named Jonas Makwakwa's girlfriend. Sunita Manilk, who ran the Sars business center, said she was marginalized and marginalized by Makwakwa, who has entered into tax agreements with companies without consultations.
The former head of the collective legal services, Makungu Mthebule, testified to the extent of Makwakwa's interference in his work. Mthebule said Makwakwa would constantly ask him questions about the status of some taxpayers. "Makwakwa was sending me an SMS and saying that he was with those high-level taxpayers, where are we with this taxpayer.
Inspections of cigarette companies and l & # 39; "rogue unit"
Former Sars employee, Gene Ravele, testified that Makwakwa had stopped Sars inspections at cigarette factories. "After my departure, there was no no inspections in cigarette factories. Until today. When the finance minister complains about the lack of compliance, it was expected, "said Ravele.
He also used the testimony to dispel rumors about the investigative unit. High-risk, known as "rogue unit." The unit was dismantled after Moyane's appointment in 2014. Ravele said the unit was crucial to Sars operations. , because it helped to dismantle a number of criminal activities.
Ivan Pillay, former Deputy Commissioner of Sars, testified and defended the creation of the unit. Pillay said that the unit did its job well and was able to tackle a number of illicit transactions by working closely with intelligence agencies.
"I think, overwhelmingly, they did this that it was necessary. Is it possible that some things went wrong, I think it is possible. Unlike a normal listener, this unit would be ready to sit outside a door and see how many trucks have left a factory. They worked on Krejcir. They worked on the illicit trafficking of gold, where we made major breakthroughs, "said Pillay.
The creation of such units was not unusual and many countries had them in place, Pillay said.
The commission will continue its work in August. Makwakwa had written to the commission to ask for an opportunity to be heard. He is likely to testify when resuming the investigation.
IOL
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