President Cyril Ramaphosa has fired SA Revenue Services commissioner Tom Moyane.
The battle between Moyane and Ramaphosa now heads to court. The president has until Friday to respond to the embattled tax boss’s application to halt processes against him in the Constitutional Court.
Moyane’s exit draws to a close a dark period in the tax agency’s history, which resulted in the exodus of dozens of experienced and skilled employees.
Ramaphosa accepted Sars commission of inquiry chair retired judge Robert Nugent's recommendation to axe Moyane and served him with a notice of termination of employment on Thursday.
Ramaphosa acknowledged in his letter of termination to Moyane on Thursday that Nugent’s interim report painted a “deeply concerning picture” of the current state of Sars.
Nugent’s interim report states that Moyane’s entry into Sars was a “calamity” for the institution and the environment during his tenure was characterised by fear, distrust and intimidation.
The Nugent inquiry heard evidence of the culling of the tax agency, through a predetermined restructuring based on conniving between Moyane and international consultancy Bain.
Key Sars units such as its large business centre, its enforcement unit and its legal and compliance units were culled during Moyane’s tenure, which are all factors which between 60 to 70 witnesses said contributed to the gaping hole in revenue collection.
The fact that the contracts with Bain and IT consultancy Gartner were both wholly irregular, with the latter one benefiting a close friend of Moyane, was further damning evidence against the errant tax boss.
Ramaphosa said Moyane’s refusal to contribute to the work of the Nugent inquiry had counted against him in arriving at his decision.
“Of further and in many ways greater concern is your refusal to meaningfully participate in the Sars commission in order to assist with identifying the root causes of the systematic failures at Sars,” Ramaphosa said in a statement from the presidency on Thursday.
Acting commissioner Mark Kingon remains in place until Ramaphosa fills Moyane’s position.
Moyane’s attorney Eric Mabuza could not be reached for comment on Thursday.
Moyane was suspended in March after a string of controversies around his running of Sars, including a R50bn hole in revenue collection in 2017 and a decline in taxpayer compliance under his watch.
Stabilising Sars has been flagged as a key priority by the National Treasury.
The tax service – crucial for raising funds for public services – was once among the country’s best run and among the most efficient state institutions.
But it became a battleground of political rivalries in recent years after former president Jacob Zuma filled it with acolytes.
Since 2014, when Zuma appointed Moyane to head it, the agency repeatedly failed to meet its annual tax collection targets.
In his report after the probe, Nugent said “the day Mr Moyane took office was a calamity for Sars.
Almost immediately, and then continuously for the next 18 months, Sars was thrown into turmoil, with tragic consequences for the lives of many people, tragic consequences for the reputation of SARS, and tragic consequences for the country at large”. – With additional reporting by AFP..