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Nene wants clean bill of health at SARS

Cape Town - Finance Minister Nhlanhla Nene says he wants the chief revenue collection office, the South African Revenue Service, to have a clean bill of health and fully maintain the confidence of taxpayers in its integrity.

He said that the recent controversies at the institution - which he did not detail but involved apparent political influence in appointments and firings of key staff - have not had an impact on revenue collection.

But if the controversies continue "for a long period of time" there would be issues that would need to be addressed, he acknowledged.

He reported that after consultation with SARS commissioner Tom Moyane and other stakeholders he has decided to appoint an advisory committee to be chaired by retired Judge Frank Kroon.

Budget and technology

His appointment was also made after consultation with Minister of Justice and Correctional Services Michael Masutha.

The committee's primary task would be to guide the direction of long-term strategy at SARS by ensuring that decisions about the revenue and customs authority's operations, personnel, budget and technology support its long-term strategy and plans.

"The committee will review the events that have been reported on by the media in recent months and advise the minister and the commissioner about the best way to prevent these matters from occurring again. On this issue, I would like to inform South Africans that there are processes under way to bring about closure as soon and as amicably as possible," said the minister.

He noted that the panel's role was informed by a section of the SARS Act which stated that the powers of a specialist committee by the minister may not be construed as interference with the assigned duties of the commissioner.

Powers and responsibilities

Nene said this is not a new body. A similar body was chaired by then chief justice Michael Corbett between 1997 and 2002. It advised SARS on matters of policy, strategy and performance to ensure they were critical, informed and constructive.

Nene emphasised that the advisory committee would serve to strengthen the commissioner's powers and responsibilities.

Referring to revenue collection, Nene reported that Sars has done "tremendously well" under the circumstances of the recent controversies.

"The reports I am getting... is that (SARS) is going to meet (the collection) target... if they don't there will be a lot to talk about."

Tom Moyane, a friend of President Jacob Zuma, was appointed commissioner in September last year, replacing acting commissioner Ivan Pillay. Pillay - who acted in the post after the resignation of former commissioner Oupa Magashula - has since been suspended by the organisation for allegedly setting up a rogue unit.

Magashula left in July last year following a probe into allegations that he had offered a chartered accountant a job at SARS under suspicious circumstances.

City Press reported that Pillay did some investigations into the president's Nkandla upgrades by commissioning legal advice on the tax implications. The case against him is ongoing.

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