Sars/Treasury breakdown, downgrade top MPs' worry list

Cape Town - A looming credit ratings downgrade, the breakdown of a relationship between National Treasury and the South African Revenue Service (Sars) and the mismanagement of state-owned enterprises - these were opposition parties' biggest concerns aired in parliamentary exchange on Thursday.

Members of opposition parties gave declarations on the Budgetary Review and Recommendation Report of National Treasury.

DA spokesperson on finance, David Maynier, said although the Minister of Finance Pravin Gordhan is to be lauded for the excellent work he does, the deteriorating relationship between him and the Sars Commissioner Tom Moyane is cause for concern.

Floyd Shivambu, EFF MP in his declaration criticised the Financial Intelligence Centre (FIC) for not successfully prosecuting cases of racketeering, money laundering and other financial crimes.

He also weighed in on Dudu Myeni, the incumbent chairperson of SAA who "continues to cause problems". "We don't agree with the turnaround plan while she is chair. She shouldn't be board chairperson of the airline," Shivambu said.

The IFP's Mkhuleko Hlengwa also declared that his party was deeply worried about the functionality of SAA and the quality of its annual reports.

"The ongoing tensions between National Treasury and Sars also don't bode well for these institutions," Hlengwa said.

The ACDP's Steve Swart said in his declaration that his party shares concerns about a credit ratings downgrade when ratings agencies do their reviews towards the end of the year.

"Our main risks for a downgrade is contingent liabilities to the value of R469.9bn with the largest exposure (R170bn) to Eskom. We support the recommendation that the National Treasury must strengthen its oversight over Eskom and SAA. SAA and all SOEs should be audited by the auditor-general's office," Swart said.

Swart concluded that he hopes government's efforts will avert a downgrade. "But we must stop shooting ourselves in the foot by laying charges against our Finance Minister."

The UDM's Nqabayomzi Kwankwa urged National Treasury in his declaration to "redouble its efforts" in its oversight role of SOEs. "Why is a company like SAA allowed to go on for years without producing annual reports?"