Johannesburg - The South African Revenue Service is going to court to cancel its deal with the Lekgotla Trifecta Consortium.
In a statement, the tax agency says it has instituted urgent proceedings at the High Court to immediately terminate the contract .
This, it says, is to properly comply with the obligation the law imposes on organs of state to pro-actively raise and resolve procurement irregularities.
LTC was one of 3 service providers appointed under a 2015 open tender to collect outstanding tax debt.
However, earlier this month, the Mail & Guardian exposed that LTC shareholder Nhlamulo Ndlhela is tax Commissioner Tom Moyane’s nephew.
On October 14, Sars said it would approach the courts if the parties could not amicably end the contract. Sars says the conflict of interest, which LTC did not disclose, “constitutes material irregularity and breach in the award of the tender”.
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The tax agency says the court proceeding is 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 failure to disclose the familial relationship between its shareholder 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,” the tax agency says.
Sars says it will not be commenting further, as the matter is now the subject of legal proceedings.
IOL