Minister appoints committee to deal with SARS unit reports

Wednesday, February 25, 2015

Cape Town – Finance Minister Nhlanhla Nene has appointed an advisory committee to attend to governance matters at the South African Revenue Service (SARS).

The Minister made the announcement prior to briefing journalists in an embargoed press briefing at the Imbizo Centre in Parliament.

The committee’s primary task, the Minister said, will be to guide the direction of long-term strategy at SARS by ensuring that decisions about revenue and customs authority’s operations, personnel, budget and technology support its long-term strategy and plans.

“In addition, the committee will review the events that have been reported on by the media in recent months and advise the Minister and the [SARS] Commissioner about the best way to prevent such from occurring.

“On this issue, I would like to inform South Africans that there are processes underway to bring about closure on this matter as soon and as amicably as possible.

“Further developments in this regard will be announced at an appropriate time,” he said.

The Minister’s announcement of the advisory committee comes after several reports in the media that claimed the existence of a rogue unit that operated within SARS.

Minister Nene said while the reports have not affected revenue collection, it was very important that they be attended to in order to protect the integrity of SARS.

“May I therefore appeal to fellow South Africans to allow SARS and all the relevant parties concerned to complete these processes and thus bring an end to this difficult chapter in the history of our most important fiscal institution,” the Minister said.

The committee will be chaired by retired judge Frank Kroon, whose appointment was made after consultation with the Minister of Justice and Correctional Services Michael Masutha.

Minister Nene said the committee would advise him as well as the SARS Commissioner on:

-        proposed strategic and business plans, goals and measures relating to those plans;

-        operational and organisational plans, including modernisation of technology systems, training and reorganisation of business units; and

-        the budget to ensure that it supports the revenue and customs authority’s strategic and business plans.

“SARS has since its inception carried out its mandate with excellence and by so doing, has helped finance South Africa’s development agenda. And that is thanks to the commitment, hard work, integrity and honesty of the nearly 15 000 people who are employed by SARS,” he said.

He said the operational performance of SARS was critical to the work of government, and that improving its revenue collection was important to the development of the country.

“It is against this background that we must ensure that at all times, we protect and enhance the organisational integrity of SARS and its employees,” Minister Nene said. – SAnews.gov.za