Moyane comes clean about ‘strained’ relationship with Gordhan
SARS head Tom Moyane says Pravin Gordhan’s statements during his budget speech – blaming the revenue service for a R30 billion tax shortfall – were “regrettable”, and is blaming the minister’s department for leaking confidential correspondence to the press.
Moyane was addressing media at a special press conference held after he was not invited to the post-budget media address.
In his budget address this week, Gordhan announced that South Africa’s budget shortfall in 2016/17 had extended to R30.4 billion, placing the blame largely at the South African Revenue Service failing to meet targets, and also noting that South Africans at large had earned less in the past year (and thus paid less tax).
However, SARS head Tom Moyane said that this assessment from the finance minister was unfair, stating that the shortfall was primarily due to a drop in VAT (consumer spending), custom duties and lower personal income tax, attributable to the slowing economy.
Strained relationship
The revenue service head also addressed the leaking of confidential letters between him and Gordhan, which highlighted the strained relationship between the two officials.
Moyane confirmed that a leak had occurred, but said that it was source was not SARS. He pointed the finger at Gordhan’s office, saying that the letters “could only come from Treasury”.
The official also confirmed that he had laid complaints against Gordhan for unprofessional behaviour, claiming that the finance minister insists on interfering with SARS operations – including processes such as approving leave.
He insisted that the right to determine and approve salaries lies with him, and denied approving his own bonuses as the leaked letters had claimed.
According to Moyane, he has approached president Jacob Zuma to appoint a person to adjudicate issues between himself and Gordhan, blaming a “cult of personality” for their strained relationship.
The breakdown of trust between Moyane and Gordhan has been long-documented through various media reports over the past year.
It was reported in 2016 that it was Moyane that initiated the Hawks investigation into Gordhan over the so-called “rogue unit”, which is currently still pending prosecution with the NPA.
After Gordhan took over as finance minister at the end of 2015, he reportedly appealed to president Jacob Zuma to fire Moyane, as he could not work amiably with the SARS chief. Moyane is seen as a Zuma loyalist.
Gordhan has openly criticised SARS management, expressing that National Treasury’s work is frustrated by a lack of co-operation and accountability from the revenue service.
Among the complaints Moyane has laid against Gordhan are accusations that minister treats him unfairly, handles him like a child, and shows no will or desire to repair the professional relationship between them.
Read: Leaked letters reveal ‘SARS wars’ showdown between Gordhan and Moyane
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