Sars boss faces new suspension

061214: IVAN PILLAY

061214: IVAN PILLAY

Published Dec 19, 2014

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Johannesburg -

Sars deputy commissioner Ivan Pillay is not yet out of the woods, and could find himself suspended again only days after his suspension was lifted.

Pillay is expected back at work on Friday after Judge Annelie Basson of the Labour Court decided his suspension was in breach of his contract of employment.

In a terse response to the judgment, Sars said it would study its contents, but The Mercury understands the revenue service intends to suspend Pillay again once it has closed the legal and procedural loopholes exposed by Basson.

These are that among other things, Sars conceded that Pillay was not given written notice of its intention to suspend him despite “substantial compliance” with its suspension policy.

The suspension followed allegations in the press of an allegedly “rogue intelligence” unit in Sars, called the national research group, which was tasked with investigating high-level organised crime.

Pillay appointed a panel chaired by advocate Muzi Sikhakhane to investigate the allegations.

At the time of Pillay’s suspension, and that of executive head of strategic planning and risk Peter Richer, Sars commissioner Tom Moyane announced there was prima facie evidence emanating from the Sikhakhane report that the recruitment, funding and practices of the “research group” were in violation of Sars’s own human resources policy.

He also said 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.

Further, Moyane argued, there was prima facie evidence suggesting that the activities of the unit might have included rogue behaviour that had the potential to damage the reputation of Sars as an organ of state.

Amid a strained fiscal environment, in which Sars is aiming to reach its target of collecting R993.4 billion in revenue, the institution has been destabilised by the allegations and the suspensions and departures of several senior executives.

These include the departure of Sars commissioner Oupa Magashula last year following allegations of professional misconduct and the departure earlier this month of its chief operations officer, Barry Hore.

The Mercury understands that Moyane met Sars’s legal counsel and human resources on Thursday.

When phoned for comment, Moyane’s “security adviser” said the commissioner was in a meeting but that he could not disclose any further details.

Pillay’s lawyer, Nazeer Cassim SC, argued in court this week that Pillay should be put on paid leave pending the investigation and pending discussions with Moyane.

But it is unclear what possibilities remain for discussions between the two, given that there appears to have been a fundamental breakdown in trust.

It is understood that while counsel for Sars and Pillay met this week, presumably to discuss the chances of resolving the dispute, the human resources department had given strict instructions that the court case proceed.

The Mercury

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