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Mark Kingon has been appointed to the role of acting Sars commissioner, following the suspension of Tom Moyane on Monday night with immediate effect by President Cyril Ramaphosa.
Moyane, who faces allegations of maladministration, was given the opportunity to resign on Sunday, according to a report by Business Day, but he allegedly refused to submit to Ramaphosa’s request.
Kingon, according to a statement issued by Treasury has worked his way through the ranks.
“Kingon is currently the acting chief officer: business and individual taxes, within Sars. He has been with Sars since its establishment and worked his way through the ranks to become the group executive: relationship management within business and individual taxes,” Treasury said.
In a letter issued to Moyane last night by Ramaphosa, the president speaks at length about the deteriorating state of affairs at the South African tax revenue service under Moyane’s leadership.
“Developments at the Sars under your leadership have resulted in deterioration in public confidence in the institution and in public finances being compromised. For the sake of the country and the economy, this situation cannot be allowed to continue, or to worsen,” Ramaphosa says in the letter.
The Democratic Alliance has welcomed Moyane’s suspension, calling his suspension “long overdue”. The DA’s finance spokesperson, Alf Lees, said that the next commissioner should investigate the mismanagement of Sars.
“Most importantly, the new Sars commissioner must take urgent steps to investigate the circumstances surrounding the management of Sars, namely:
• The suspicious Jonas Makwakwa (Makwakwa was chief officer for business and individual tax before resigning last week) transactions identified by the Financial Intelligence Centre;
• Special treatment given to Gupta companies on the R70 million VAT refund; and
• The assessment of tax payable by former President Jacob Zuma must be fully and independently investigated, Lees said.
“The next Sars commissioner must be an individual with a proven track record in tax administration and financial management. Their immediate task will be to oversee a restoration of taxpayer morality and improvement in tax revenue collections,” he said.
During Ramaphosa’s state of the nation address, he indicated that an inquiry was being set up to look into the leadership at Sars.
Ramaphosa, in the letter, speaks about Moyane’s role in failing to ensure the integrity of Sars.
He also addressed how Moyane had dealt with former chief officer for business and individual taxes Jonas Makwakwa, who resigned last week. Makwakwa, who cited “personal reason” for resigning, is currently being investigated by the Hawks for his role in alleged money laundering and corruption.
“In relation to Mr Makwakwa, your delay in attending to this matter, your treatment of the report given to you by the Financial Intelligence Centre, listing his transgressions, and your failure to report this to the Minister immediately not only violated the FIC Act but also violated the provisions of section 195 of the Constitution which you are enjoined to fulfil in terms of section 4(2) of the Sars Act,” the letter reads.
Ramaphosa also cited the controversial handling of VAT refunds last year as contributing to Moyane’s suspension. There were widespread allegations that Sars was intentionally delaying the payment of VAT refunds in order to inflate its apparent revenue collection.
“In relation to the management of VAT refunds, you have brought the Sars into serious disrepute, failed in your duties as accounting officer for the Sars and potentially jeopardised the integrity and viability of the Sars as collector of revenue for the State,” Ramaphosa said.
Ramaphosa says in the letter that Moyane has failed to acknowledge his failures.
“I therefore have no choice, in the public interest, but to refuse to make the undertaking you ask of me in your letter of March 19. I wish to inform you that I hereby suspend you as commissioner of Sars with immediate effect pending the institution of disciplinary proceedings against you,” Ramaphosa said.
