4 December 2017

South Africa: Revenue Service Corrects Reports On Payment of Jonas Makwakwa

press release

The South African Revenue Service (SARS) wishes to correct inaccurate and untrue media reports that Chief Officer: Business & Individual Tax, Mr Jonas Makwakwa was paid a bonus while on suspension.

SARS finds it necessary to specifically clarify the deliberate misrepresentation of facts as this perpetuates a media-created narrative that SARS Commissioner, Tom Moyane, gives preferable treatment to Mr Makwakwa and conducts himself in a manner that contravenes the law.

Much as SARS Commissioner, Tom Moyane, has clarified this matter at the Standing Committee on Finance (SCOF) on Tuesday, 28 November 2017, SARS wishes to reiterate that, contrary to media reports, Mr Makwakwa was neither paid a bonus while on suspension nor was there any interference in the process of his suspension.

SARS is deeply concerned that the media continues to misinform the public about the alleged payment of his bonus and the process of his suspension.

After receiving the report from the Financial Intelligence Centre (FIC), SARS sought an outside legal opinion on the matter. The Commissioner, Mr Tom Moyane, took the decision to suspend Mr Makwakwa pending an independent investigation into the allegations.

SARS wishes to confirm that, finally, Advocate Motau, SC, has submitted the final report which found that Mr Makwakwa was not guilty of any of the charges levelled against him.

Bonuses

On Tuesday, 28 November, in his presentation to SCOF, Commissioner Moyane pointed out that he had approved the SARS executive performance bonuses for the financial year 2015/16 on 31 August 2016.

Mr Makwakwa received a bonus payment related to this period - preceding his suspension - as he was only suspended in September 2016.

The payments were based on the individual performance of each executive member, in terms of the SARS Incentive Scheme Policy.

These payments, amounting to R3 million, were reported in the SARS Annual Report for 2016/17, which was tabled by the Finance Minister, Malusi Gigaba on Thursday, 23 November 2017.

Three executives were in the qualifying posts for only three months during the 2015/16 financial year and their payments were calculated and apportioned according to the three months.

SARS informed the SCOF that although bonuses were paid to the SARS executives, no performance bonus was paid to Mr Moyane for two consecutive years, 2015/16 and 2016/17.

SARS wishes to appeal to the media to uphold the highest standards of factual, fair and accurate reportage.

SARS is deeply concerned about apparent bias, irresponsible and mischievous reportage of stories without the verification of facts.

Issued by: South African Revenue Service

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