SARS commissioner Tom Moyane suspended
South African tax agency commissioner Tom Moyane was suspended and will face disciplinary proceedings as newly elected President Cyril Ramaphosa’s administration moved to restore trust in the institution.
Ramaphosa has replaced Jacob Zuma appointees in the government since taking over the presidency last month after his predecessor was forced to step down by the ruling party.
He has also removed boards of state companies as he seeks to boost investor confidence after years of weak economic growth.
The decision on Monday followed a meeting between Moyane and Ramaphosa during which the head of the South African Revenue Service refused a request to resign, the Presidency said in a statement.
Ramaphosa said in a letter to Moyane that under his leadership there had been a deterioration in public confidence in the agency and that public finances had been “compromised.”
“For the sake of the country and the economy, this situation cannot be allowed to continue, or to worsen,” the president said in the letter.
Court Interdict
Moyane threatened to seek a court interdict to stop plans to remove him from his position, according to two people familiar with the matter.
Public Enterprises minister Pravin Gordhan, who previously clashed with Moyane while he was finance minister, said in a wide-ranging interview last week that the revenue service’s leadership has “lost all credibility.”
The government agreed to probe under-collection by the nation’s tax service in November after the National Treasury forecast a revenue shortfall of about R50 billion ($4.2 billion) this fiscal year.
Moyane faced criticism from lawmakers for his handling of an investigation into accusations his former deputy Jonas Makwakwa and his partner received R1.2 million in suspicious payments, and allegations of mismanaging tax refunds.
Moyane has denied wrongdoing.
“President Ramaphosa indicated that as SARS Commissioner, Mr Moyane holds a high position of trust in the management of the country’s public finances,” the presidency said.
“It was therefore necessary to act urgently and immediately to protect the institution and place it on a path to stability and recovery.”
Mark Kingon has been appointed acting commissioner for the South African Revenue Service, National Treasury said in an emailed statement on Tuesday.
Kingon, who has been with SARS since its establishment, was the acting head of the revenue body’s business and individual taxes unit, it said.
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