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The South African Revenue Service (Sars) wants out of the tender awarded by its former chief officer of business and individual tax Jonas Makwakwa.
Makwakwa leaves Sars under a cloud over Mahube Payment Solutions, New Integrated Credit Solutions (Nics) and the latter’s business relationship with the tax body as its partner in debt collections.
City Press has learnt from a highly placed source within the revenue collector that Sars’ lawyers wrote to debt collection company Nics.
“We have asked them to give reasons as to why they should be allowed to continue with the contract which was awarded illegally,” said a source within the revenue service.
The source, who is close to Sars commisioner Tom Moyane, said Makwakwa was becoming a liability to the revenue service and was attracting negative publicity while they were trying to focus on meeting the tax collection targets.
According to the source, Makwakwa opted to resign immediately when he was confronted by Moyane and other Sars executives over his non-disclosure of the pre-existing relationship with the debt collection company.
Sars announced Mark Kingon as the acting chief officer of business and individual tax just hours after announcing Makwakwa’s resignation.
Makwakwa, who remains under investigation by the Hawks for dubious payments he received which were highlighted by the Financial Intelligence Centre, leaves at the time the pressure is mounting over Moyane to resign.
Makwakwa was known to be close to the tax boss who has been accused of protecting him. Moyane denied the allegations.
Attempts to reach Nics were unsuccesful.
- Additional reporting by Fin24
