Finance Committee must probe the handling of the investigation into ‘suspicious and unusual payments’ at SARS 

19 September 2016

SARS Commissioner, Tom Moyane, has assured the revenue service that all reasonable steps were followed when suspending SARS Chief Officer of Business and Individual Tax, Jonas Makwakwa, who allegedly received “suspicious and unusual payments” in the amount of R1.2 million between 2010 and 2016. 

However, in a statement released last week he seems to concede there was a delay in dealing with the matter, and blames the delay on the Financial Intelligence Centre (FIC). The FIC, according to Tom Moyane, refused to cooperate with SARS. 

Whatever the case, there are now a number of burning questions about the handling of the investigation into the “suspicious and unusual payments”, which need to be probed in Parliament. 

On the FIC, we need to know:

- whether the FIC produced the report on “suspicious and unusual payments”;

- when, assuming the FIC produced the report, it was referred to SARS;

- whether, assuming the FIC produced the report, the report was referred to the SAPS, and if it was not referred to the SAPS, why it was not referred to the SAPS; and

- whether the FIC failed to cooperate with the investigation being conducted by SARS.

On SARS, we need to know:

- why SARS failed to inform National Treasury about the suspension of Jonas Makwakwa;

- why Kelly Ann Elskie, who is allegedly implicated in the “suspicious and unusual payments”, was not suspended by SARS;

- the scope and purpose of the investigation being conducted by international law firm Hogan Lowels on behalf of SARS; and

- whether the report was referred to the SAPS, and if it was not referred to the SAPS, why it was not referred to the SAPS. 

What we need to know, most importantly, is why the serious allegations against Jonas Makwakwa, which may constitute a crime in terms of the Prevention of Organized Crime Act (No. 121 of 1998), do not appear to have been referred for further investigation to the SAPS. 

We have to be absolutely sure that the serious allegations against Jonas Makwakwa, concerning the “suspicious and unusual payments”, are being properly investigated and will not be compromised by rivalry between the FIC, SARS and National Treasury. 

I have, therefore, requested the Chairperson of the Standing Committee on Finance, Yunus Carrim, to schedule an urgent meeting on the investigation into “suspicious and unusual payments” with SARS Commissioner Tom Moyane and FIC Director Murray Michell, in Parliament. 

Issued by David Maynier, DA Shadow Minister of Finance, 19 September 2016