Sars suspends two top managers

Published Dec 8, 2014

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DEPUTY SA Revenue Service (Sars) commissioner Ivan Pillay and group executive of strategic planning and risk Peter Richers have been suspended, the revenue service announced on Friday.

“I have… decided to suspend the following two senior executives pending a disciplinary process in terms of the Sars disciplinary code and procedure, and applicable labour laws including the Labour Relations Act,” Sars commissioner Tom Moyane said.

Following media allegations against some senior officials, Pillay had appointed a panel to investigate the existence and truthfulness of the allegations, he said.

Advocate Muzi Sikhakhane, SC, together with a panel of senior advocates were tasked with investigating the allegations. Moyane said in the midst of the investigation further allegations were made in reports about “illegal activities of a covert unit” in October.

He said according to the terms of reference the panel had to probe whether there was any breach of confidentiality provisions contained in chapter 6 of the Tax Administration act relating to the breach of the Sars oath of secrecy and any engagement in corrupt activities.

”While Sars remains an efficient and effective organisation, the unlawful establishment of a unit that operated ostensibly in a covert manner, has created a climate of intrigue, fear and subterfuge within the organisation,” Moyane said.

“The establishment of the unit without having the requisite statutory authority was indeed unlawful.”

Other reasons were that there was prima facie evidence that the unit may have abused its power and resources by engaging in activities that reside in the other agencies of government and which it had no lawful authority to perform.

There was prima facie evidence that the recruitment, funding and practices of the unit were in violation of Sars’s own human resources policy and there was prima facie evidence that the existence of the unit had the real possibility of undermining the work of those agencies tasked with the investigation of organised crime and the collection of intelligence.

The last reason was that there was prima facie evidence that suggested the activities of the special projects unit might have included rogue behaviour that had the potential to damage the reputation of Sars as an organ of state.

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