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SA Revenue Service (Sars) commissioner Tom Moyane has vehemently denied being President Jacob Zuma’s stooge in a political battle that has pitted the Hawks police directorate against his boss, Finance Minister Pravin Gordhan.
However, speaking to City Press on Friday after announcing that Sars’ tax revenue collection reached the R1 trillion mark, Moyane was adamant that the restructuring of top brass at the service, which had become a bone of contention with Gordhan, would not be undone.
Tax revenue collection surpassed the revised estimate in February by R154.07 million to R1.0699 trillion, which is 8.5% more than what was collected in total revenue in the 2015 fiscal year.
Sars said other “special initiatives” netted the taxman about R100 billion. The successful collection lifted the estimated tax-to-GDP ratio from 25.1%, as anticipated in the 2016 budget, to 26.3%.
Gordhan and Moyane put their differences aside and presented a united front on Friday, but they both ducked questions about whether their joint press conference in Pretoria was a sign that they had smoked the peace pipe.
Asked whether he was Zuma’s proxy, as has been alleged in various reports, Moyane said: “I am not involved in politics. That which you’re talking about is politics. That which we talked about today is economics. There’s a huge difference. What we’re talking about here are figures and how much we’ve been able to create and inculcate the culture of payment to the taxpayer and follow those taxpayers who are noncompliant. Any other thing is not within my framework.
“What has happened today must tell you where I stand. You don’t need to be a rocket scientist. I came here to be able to make Sars look better. Our mandate and the only mandate we have is the collection of revenue. Sars is an apolitical institution,” said Moyane.
About his frosty relationship with Gordhan, Moyane said: “As I told you, I concentrate on what is before me. What is on the outside, I have nothing to do with it. I am respectful to everybody. My demeanour and approach and everything I’ve done demonstrated my persona today.”
He would not entertain a question about the so-called Sars rogue spy unit, the basis for the Hawks investigation of Gordhan, who was the Sars commissioner at the time it was created in 2007.
Gordhan and Moyane have been in conflict over claims that the existence of the unit broke the law and, this week, Gordhan reiterated in his response to the Hawks that the unit was created lawfully.
Moyane said he was not involved “in any form or shape” in the questioning of Gordhan by the Hawks or allegations that the investigation was being used to target Gordhan.
“This [investigation into the unit] started before I arrived [at Sars] and if you can report that and become factual, then it exonerates [me] and makes my life easier because I don’t need to explain myself.
“I did not invent this thing. You guys [the media] have aptly reported this thing in your newspapers. I’m not bashing any journalist or newspaper, but if, as you confirm in your own words, it [the investigation into the Sars unit] started before I came, why should I be in the middle of this?
“I am not [involved] in any form or shape. Mine is the concentration of the 14 500 men and women to wake up in the morning and collect money that is due to make our country look good ... any other thing is not in the purview of Mr Moyane,” said Moyane.
The Sars restructuring model, which reportedly cost R150 million, would not be undone, he said.
“We are not going to go back on the issue of restructuring, which got us to where we are, which is making history in revenue collection.
“The restructuring is the epicentre that epitomises what we’ve seen today. Without it, we would have been R10 billion out. It has nothing to do with moving people for the sake of who sits where,” said Moyane, who added that the “insults” in the reporting about him in the media had affected his wife the most.
While the two shook hands, shared a joke and met briefly before the media event, Gordhan said his relationship with Moyane was a “work in progress”.
“I am of the firm view on two things: that we must behave like professionals and do that which is necessary in the national interest – because for my colleagues and me, that is an absolute priority at the moment. And secondly, one of the lessons South Africa is learning at the moment is the importance of functional, well-run, credible institutions,” said Gordhan while seated next to Moyane.
On Friday, it emerged that Moyane, Sars as a legal entity and Sars’ acting chief operations officer, Jonas Makwakwa, were suing the Mail & Guardian for defamation and seeking a total of R4 million in damages. Moyane and Makwakwa are seeking damages of R1 million apiece, while Sars is seeking R2 million for “severe reputational damage”.
In their papers, the plaintiffs accuse the newspaper and amaBhungane reporters of defaming them “wrongfully and maliciously, with injurious intent”.
Gordhan said that in spite of meeting targets on revenue collection, the economic growth expectation of 0.9% for this year was not enough to “generate the kind of revenue that enables us to fund all of government’s programmes”.
Gordhan said government was doing all it could to ensure certainty in the market, as ratings agencies and foreign investors were interested in how government would implement its fiscal policy.
“We cannot spend money we do not have. We cannot borrow beyond our ability to repay. What we say here and what we do here is heard [internationally] within minutes,” said Gordhan, emphasising the importance of everyone creating a positive picture of the country.
