Johannesburg - The panel led by advocate Muzi Sikhakhane to investigate the SA Revenue Service investigative head, Johann van Loggerenberg, unilaterally expanded its mandate to investigate the so-called covert unit that was investigating criminals linked to tax evasion.
This is likely to be an argument against the suspension last week of deputy commissioner Ivan Pillay and strategy head Pete Richer.
A source, who asked to remain anonymous for fear of retribution, told The Star that Sikhakhane’s panel had to investigate only allegations against Van Loggerenberg by his former lover and State Security spy, Belinda Walters.
Instead, the panel decided to investigate the national research group (NRG), an investigative unit within Sars, after reports emerged in Sunday newspapers that the unit had allegedly bugged senior politicians, including President Jacob Zuma.
Imraan Mahomed, attorney to the panel, on Thursday rejected the argument, saying it was factually incorrect to say the mandate was expanded because section 9 of the Sars Act had given a wide scope to the panel.
He could not say what the panel’s terms of reference were off-hand and referred queries to next week, when he would have access to the report, which hasn’t been made public.
The extended scope centres on the NRG, which was tasked with probing serious crimes to do with customs and excise tax avoidance relating to the importation of cigarettes, illicit trade in drugs and rhino horn, and other illegal activities.
The Star understands that several of the people Sars was investigating had connections to senior politicians, state institutions and political parties, which had approached the revenue service to halt its investigations.
But the unit has rejected allegations that its work was covert, explaining that it never had the expensive equipment needed to intercept phone calls or messages.
The same source said Sikhakhane’s panel did not inform Sars that it was investigating the NRG, nor had it called in crucial members of the unit who managed it, including Richer and Pillay.
“At no point did they put to Ivan, or even Johann, several allegations which they have made findings to,” the source said.
“So the idea it was covert was never put to Ivan as a question. He was never asked to answer to how these people (in the NRG) operated.”
A third charge is that the panel legitimised untested allegations made during its work by reporting the allegations as if they were fact.
The Sikhakhane report has not been made public, with commissioner Tom Moyane publishing only parts of it.
The Star