Clarity required on long overdue KPMG report on SARS “rogue unit”
4 September 2015
A reply to a parliamentary question today stated that a report from KPMG into the so-called “rogue unit” at SARS was only “preliminary” and that a final report was expected to be submitted by KPMG soon.
This contrasts with comments by SARS Commissioner, Tom Moyane, made during a briefing to Parliament’s Standing Committee on Finance on 25 August, in which he stated that the report was in possession of Finance Minister Nhlanhla Nene and he did not point out that it was a “PRELIMINARY” report.
The report, which was due in June this year, is as a result of a forensic investigation launched by SARS into the alleged illegal spy activity within the Revenue Service.
The controversy around this so-called “rogue unit” at SARS has already resulted in numerous dismissals and departures of top management, in what looks like a purge of anyone who knows the truth or asks difficult questions to those in power.
While these suspensions have been under the guise of disciplinary action relating to the alleged wrongdoings by certain individuals, there is ample reason to believe that this is as a result of the sensitive investigations that are ongoing at SARS. These investigations include a probe into the tobacco industry – as well as investigations into the ANC’s tax bill and the President’s own tax bill.
The revelation that the report has not been finalised is indeed concerning. Sadly, it seems the report is no closer to being released and whatever remedial action it proposes is further delayed.
I will therefore once again write to Committee Chair, Yunus Carrim, to request that the Minister should appear before Committee to provide clarity on the status of the report and, barring any further postponements,table the full and uncensored KPMG report.
The institutional independence of SARS is critical and cannot continue to be undermined.
NATIONAL ASSEMBLY
QUESTION FOR ORAL REPLY
QUESTION NUMBER: 395 [NO3730E]
DATE OF PUBLICATION: 24 AUGUST 2015
Mr R A Lees (DA) to ask the Minister of Finance:
Has he received the KPMG Report on the Covert Intelligence Unit (CIU) operating within the SA Revenue Service (SARS) from (a) the SARS Commissioner and/or (b) any other person; if not, (i) why not and (ii) what is he doing to obtain a copy of the specified report; if so, what are (aa) the main contraventions that KPMG reported on and (bb) the relevant details of the recommendations contained in the specified report? NO3730E
REPLY:
SARS has received a preliminary report from KPMG, the copy of which is with the SARS Commissioner, Minister of Finance as well as the SARS Advisory board. Once the final report is submitted by KPMG, which is expected to be soon, the SARS Advisory board will meet with the SARS Commissioner and the Minister of Finance to provide them with guidance on the way forward.
ENDS
Statement issued by Alf Lees MP, DA Shadow Deputy Minister of Finance, September 4 2015
