Global consultancy ‘failed’ SA Revenue Service: report
Global management consultancy Bain & Co has been accused of failing the South African Revenue Service, after testimony at the Nugent Commission into mismanagement at SARS told how the group was awarded irregular contracts at inflated prices that accomplished very little.
According to a report by the City Press, testimony out of the commission has revealed several irregularities with the appointment of Bain, which was tasked with helping SARS restructure its operating model under commissioner Tom Moyane.
“I can’t say Bain was properly appointed. [There are] a number of red flags there which resulted in an irregular appointment,” said National Treasury procurement official Solly Tshitangano.
First of the irregularities was the price, where Bain was awarded different contracts worth a combined R204 million – it was argued that these should have all been under one tender.
Tshitangano said that the tender process was also not competitive, and was held over an unusually short period of six days. According to SARS, this was because the work needed to be carried out on an urgent basis.
However, it was found that there was no urgency, the City Press said.
A point was also raised that Bain’s bid came “a fraction” under the cost of a competing bid by McKinsey & Co, which raises suspicions of possible inside information.
Another concern was that Bain said that it had approached suspended SARS commissioner Tom Moyane as early as 2012 to do work for the revenue service – but Moyane was only appointed as commissioner in 2014.
Despite red flags being raised about the Bain contract, it was pushed through.
Inquiry evidence leader Advocate Carol Steinberg said that Bain had failed SARS, with many questioning why the work needed to be done in the first place.
Vittorio Massone, managing partner of Bain’s local office, said that the group had done nothing wrong, had done “solid” work for SARS, and that there was nothing that required the company to apologise to the people of South Africa.
You can read the full report in the City Press
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