Massive failure of integrity and governance at SARS: State Capture report

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The Judicial Commission of Inquiry into State Capture has found that there was a massive failure of integrity and governance at South African Revenue Services (SARS).

Part 1 of its report which was delivered to President Cyril Ramaphosa on Tuesday, covered SARS among other state-owned institutions.

The State Capture Commission has made adverse findings against former SARS Commissioner Tom Moyane, with one of its recommendations being that he be charged with perjury in relation to giving false evidence to Parliament.

The State Capture Commission has made a number of recommendations that speak to state capture that took place at the South African Revenue Services.

It proposes that Moyane be charged with perjury for furnishing Parliament with false evidence around a friend’s company, New Integrated Credit Solutions which provided debt collection services to SARS.

The report calls for law enforcement agencies to conduct necessary investigations to assist the National Prosecuting Authority (NPA) in determining whether to pursue prosecutions in relation to the award of Bain & Co contracts.

It also proposes that the SARS Act of 1997 be amended to provide for an open, transparent and competitive process for the appointment of the Commissioner of SARS.

The video below discusses the handing over of the first part of the State Capture report:

In August 2019, SARS Commissioner Edward Kieswetter said they were working closely with the National Prosecuting Authority and other law enforcement agencies to get those involved in State Capture and tax fraud arrested.

The commissioner said they have close to 2 000 tax-related cases awaiting prosecution and the SARS Specialised Tax unit will be working around the clock with law enforcement agencies.