Parliament's standing committee on finance has ordered the South African Revenue Service (Sars) to submit the confidential KPMG and Hogan Lovells reports to it within the next week.
The disgraced KPMG report relates to a supposed "rogue unit" within the revenue service, and the Hogan Lovells report was mandated to investigate Jonas Makwakwa, Sars commissioner Tom Moyane's second-in-charge.
Moyane appeared before the committee on Tuesday. Much of the discussion consisted of arguments over whether the confidential reports should be made public. The commissioner appeared alongside members from KPMG.
#SARS It seems questions will have to wait until Tuesday, or until legal opinion is gained on status of KPMG report (that's in the public domain). Looks like ANC MPs are adamant on this - don't want KPMG interrogated on so-called rogue unit report.— Gaye Davis (@Gaye_Davis) March 13, 2018
#SARS Chair Carrim asks for reports in public domain to be given to other MPs & for opinion on status of KPMG report, which was last year referred to Joint Standing Committee on Intelligence.— Gaye Davis (@Gaye_Davis) March 13, 2018
#SARS KPMG's Roy Waligora says the firm withdrew conclusions and recommendations in its report on the SARS intelligence unit because they were repeated verbatim from a memo sent by SARS' attorneys & KPMG cld not stand by them,— Gaye Davis (@Gaye_Davis) March 13, 2018
Fin24 reports that Moyane told the committee Makwakwa has approved the release of two reports in Sars' possession, as well as making his personal tax information available to the committee.
The point of contention reportedly lay in whether the committee could gain – or even wanted – access to Makwakwa's tax information.
Carrim: I think Makwakwa is entitled to not release his personal tax details.... because often things get leaked to the media #SARS— Aarti Narsee (@ajnarsee) March 13, 2018
Carrim: suggests that an independent tax expert be given the personal tax info of Makwakwa and this should be via closed meeting #SARS— Aarti Narsee (@ajnarsee) March 13, 2018
Makwakwa was red-flagged by money-laundering authorities for suspicious deposits worth millions of rands into his personal accounts made over six years.
In that time, he and his wife, Kelly-Ann Elskie – who also works at Sars – between them made deposits worth about R1.6-million.
#SARS Moyane: Since reinstatement of Jonas Makwakwa... a dark cloud has been hanging over the organisation. SARS 'deeply concerned' as last 2 weeks of revenue collection approach.— Gaye Davis (@Gaye_Davis) March 13, 2018
Last year, KPMG released a bombshell statement in which it withdrew its investigation into the so-called "rogue unit".
Moyane seemingly used the disavowed report, nevertheless, as part of the justification for his alleged witch-hunt of members of the high-risk investigation unit (HRIU) – the so-called "rogue unit", actually an effective and successful arm of Sars at the time – in 2014 and 2015. This led to the dismantling of the unit and the departure of numerous senior staff members and experienced forensic investigators.