SARS second in command still on the hook for R1.2 million in dodgy payments: report
SARS’ second in command, Jonas Makwakwa, still needs to answer for R1.2 million in suspicious payments into personal accounts as identified by the Financial Intelligence Centre (FIC), according to a report by Business Day.
Makwakwa returned to his job at SARS at the start of November, after the revenue service declared he had been cleared of all wrongdoing by an independent investigation run by law firm, Hogan Lovells.
However, in a statement released on Thursday, Hogan Lovells said that it was never in its scope to investigate the transactions themselves, and it was rather commissioned to investigate whether there was misconduct by Makwakwa and his girlfriend, Kelly-Ann Elskie.
“It did not seek to directly investigate the financial transactions identified by the FIC. We understand that all criminal-related allegations arising from the FIC report were referred to the relevant authorities for investigation,” the law firm said.
The firm said it produced a report that contained recommendations for the management of SARS, one of which was that disciplinary action be taken against Makwakwa for nondisclosure of external interests.
The matter was then moved to an internal SARS disciplinary hearing, which subsequently cleared Makwakwa of all charges.
According to the FIC, Makwakwa, SARS’ chief officer for business and individual taxes, had received suspicious cash deposits amounting to R1.2 million between 2010 and 2016.
Deposits of R450,000 were also made into Elskie’s bank account. 75 cash deposits totalling R785,00 were paid into Makwakwa’s personal bank account, the bulk of which were made in 2014 and 2015, the FIC report said.
SARS commissioner Tom Moyane faced criticism for not taking immediate action against Makwakwa, instead warning him of the allegations against him, before being forced to suspend the executive once the FIC report became public knowledge.
At the time, Moyane said it was an internal SARS matter and didn’t require reporting to authorities.
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