South Africa: Tom Moyane Accused of Costing SARS, and South Africa, At Least R142-Billion

Photo: GCIS
Suspended SARS Commissioner Tom Moyane (file photo).
analysis

The deep destruction Tom Moyane's reign inflicted on SARS, and the country, came into focus on Tuesday when four top former SARS managers explained the circumstances which led to their leaving the institution. Moyane will have to weather a plethora of accusations by former SARS officials under oath - including that SARS' revenue stream was manipulated in an attempt to achieve the revenue target. This is how Day Two of the Nugent Commission of Inquiry into SARS unfolded - it was not a pretty affair.

Whereas Pravin Gordhan on Monday laid out the yardstick of an effective SARS to the Nugent Commission of Inquiry, Tuesday was all about how SARS got "broken" - resulting in a R48-billion revenue deficit that partially translated into a percentage point increase in VAT. It was devastating news to the poor, and the start of a deep crisis considering government's extensive expenditure plan.

Five SARS officials testified on Tuesday - one of them is still working for the service while four resigned at various stages during Moyane's tenure. The commission, chaired by retired judge Robert Nugent, focused on why numerous senior managers - highly effective and skilled executives with...

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