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Johannesburg - The Sunday Independent newspaper reported that an alleged covert Sars unit was approved at the highest levels of government and established in partnership with the National Intelligence Agency (NIA).
A document in the possession of the newspaper states the NIA’s willingness to create a “ring-fenced capability” to help Sars provided funds were made available to cover personnel costs. The request was reportedly addressed to and signed by then finance minister Trevor Manuel and his then deputy Jabu Moleketi.
The Sunday Independent reported that the documents bring into question statements by Sars commissioner Tom Moyane citing investigations into claims of illegal spying brought against the Sars unit national research group.
An open secret?
The document also reportedly claims that the allegations against the unit have been in circulation for a number of years and were discredited in earlier investigations.
The intelligence unit was reportedly set up in 2007.
It established a brothel in Durban as a cover for officials working from home; spied on people, including taxi hitmen, druglords, cigarette and abalone smugglers, Sars officials and politicians. Some Sars officials reportedly infiltrated the ANC as bodyguards.
Suspension for misconduct
In September, Johann van Loggerenberg, Sars' former head of tax and customs investigations, who reportedly once headed the unit, was placed on special leave by Moyane pending a misconduct probe.
On December 5, Moyane announced the suspensions of deputy commissioner Ivan Pillay and strategic planning and risk group executive, Peter Richer.
Sunday Independent reported that one document, signed by then commissioner Pravin Gordhan, was a request sign-off seeking approval to fund a special capacity within NIA to partner with Sars and law enforcement agencies to address the illicit economy.
Discussions with NIA and the police
The newspaper said the documents recorded discussions with NIA and the police, covered meetings between Sars and NIA from 1999 to 2003 and details discussions on areas of co-operation between the two entities.
In addition, the Sikhakhani investigation confirmed reports, that were continuously denied by Sars, that a covert unit within Sars was engaged in a wide spectrum of illegal activities and recommended that tax settlements worth billions should be reviewed.
According to the Sunday Times, high profile South Africans including Dave King, Cobus Wiese and Julius Malema could be faced with much higher tax bills if their deals are reviewed.
Tax deals up for review?
It found that Sars operated a covert unit that illegally spied on taxpayers, including some it had cut deals with. As a result, all deals over the past ten years could be up for review.
Deals include businessman King’s R700m settlement reached after he owed Sars R2.7bn, while Wiese settled for an undisclosed amount after being slapped with a R2bn bill last year.
The report has recommended that Sars conduct a forensic investigation into all settlements concluded since 2005.
The Sars scandal dominated headlines last week.
Jobs on the line
On Wednesday last week, Pillay and Richer challenged their suspensions in the Labour Court in Johannesburg. Sars withdrew the suspension of Richer.
On Thursday, the Labour Court found Sars breached Pillay's contract when it suspended him without giving written notice and ordered that Pillay's suspension be lifted and he return to work the next working day following the date of the order.
Meanwhile, Finance Minister Nhlanhla Nene has moved to restore the public’s confidence in the South African Revenue Services and pledged to do everything in his power to ensure the body remains a model institution.
According to the Sunday Independent, Nene said he had received a copy of advocate Muzi Sikhakhane’s report on Sars’ rogue spy unit following an independent panel probe and that he will make an announcement on the way forward before the end of January.
He said he would also brief parliament on the matter at an appropriate date.
Also read:
Sars: Why Pillay is up for suspension again
Sars ordered to uplift Pillay suspension
Sars 'purge' a Christmas gift for underworld
- Fin24, Sapa
A document in the possession of the newspaper states the NIA’s willingness to create a “ring-fenced capability” to help Sars provided funds were made available to cover personnel costs. The request was reportedly addressed to and signed by then finance minister Trevor Manuel and his then deputy Jabu Moleketi.
The Sunday Independent reported that the documents bring into question statements by Sars commissioner Tom Moyane citing investigations into claims of illegal spying brought against the Sars unit national research group.
An open secret?
The document also reportedly claims that the allegations against the unit have been in circulation for a number of years and were discredited in earlier investigations.
The intelligence unit was reportedly set up in 2007.
It established a brothel in Durban as a cover for officials working from home; spied on people, including taxi hitmen, druglords, cigarette and abalone smugglers, Sars officials and politicians. Some Sars officials reportedly infiltrated the ANC as bodyguards.
Suspension for misconduct
In September, Johann van Loggerenberg, Sars' former head of tax and customs investigations, who reportedly once headed the unit, was placed on special leave by Moyane pending a misconduct probe.
On December 5, Moyane announced the suspensions of deputy commissioner Ivan Pillay and strategic planning and risk group executive, Peter Richer.
Sunday Independent reported that one document, signed by then commissioner Pravin Gordhan, was a request sign-off seeking approval to fund a special capacity within NIA to partner with Sars and law enforcement agencies to address the illicit economy.
Discussions with NIA and the police
The newspaper said the documents recorded discussions with NIA and the police, covered meetings between Sars and NIA from 1999 to 2003 and details discussions on areas of co-operation between the two entities.
In addition, the Sikhakhani investigation confirmed reports, that were continuously denied by Sars, that a covert unit within Sars was engaged in a wide spectrum of illegal activities and recommended that tax settlements worth billions should be reviewed.
According to the Sunday Times, high profile South Africans including Dave King, Cobus Wiese and Julius Malema could be faced with much higher tax bills if their deals are reviewed.
Tax deals up for review?
It found that Sars operated a covert unit that illegally spied on taxpayers, including some it had cut deals with. As a result, all deals over the past ten years could be up for review.
Deals include businessman King’s R700m settlement reached after he owed Sars R2.7bn, while Wiese settled for an undisclosed amount after being slapped with a R2bn bill last year.
The report has recommended that Sars conduct a forensic investigation into all settlements concluded since 2005.
The Sars scandal dominated headlines last week.
Jobs on the line
On Wednesday last week, Pillay and Richer challenged their suspensions in the Labour Court in Johannesburg. Sars withdrew the suspension of Richer.
On Thursday, the Labour Court found Sars breached Pillay's contract when it suspended him without giving written notice and ordered that Pillay's suspension be lifted and he return to work the next working day following the date of the order.
Meanwhile, Finance Minister Nhlanhla Nene has moved to restore the public’s confidence in the South African Revenue Services and pledged to do everything in his power to ensure the body remains a model institution.
According to the Sunday Independent, Nene said he had received a copy of advocate Muzi Sikhakhane’s report on Sars’ rogue spy unit following an independent panel probe and that he will make an announcement on the way forward before the end of January.
He said he would also brief parliament on the matter at an appropriate date.
Also read:
Sars: Why Pillay is up for suspension again
Sars ordered to uplift Pillay suspension
Sars 'purge' a Christmas gift for underworld
- Fin24, Sapa
