MEDIA STATEMENT BY FORMER SARS OFFICIALS, MR IVAN PILLAY AND PETER RICHER

RESPONSE TO INVESTIGATIONS BY THE HAWKS

JOHANNESBURG, 2 MARCH 2016- The public statements today by the Ministers of Police and State Security on investigations by the Hawks into investigative units at the South African Revenue Sewice (SARS) is a violation of our rights to dignity and reputation.

We are left with no other option than to seek legal advice and to take appropriate action to defend ourselves. To date, all investigations that have been instituted against us, either by SARS or other state institutions, have never afforded us a fair opportunity to be heard or to have our side of the story represented.

Allegations that the investigative units in SARS were unlawful and illegal, operated front companies including running a brothel, bugged President Jacob Zuma, spied on taxpayers and entered into illegal settlements for tax disputes, gave certain taxpayers preferential treatment, infiltrated taxpayers, broke into homes and planted listening devices and the like, are all false and unsubstantiated.

In addition, the allegation that SARS, during our time as managers, purchased and used sophisticated spyware is false and unsubstantiated.

Several things are notable about the Ministers' public statements:

They did not announce or mention which law has been breached or the specific breaches that the Hawks are investigating;

They ignore the assertion that was made by the Minister of Finance, that the National Research Group (NRG) and other investigative units at SARS were established lawfully, with ministerial approval, operated within the SARS legal and policy framework and generated significant tax revenue for South Africa.

The Ministers of Police and State Security have sought, among others, to rely on the Sikhakhane report which is flawed in fact and in law, and is eminently challengeable, and the Kanvane report, Which bears no relevance to the lawfulness Of or not Of the investigative units in SARS.

We reiterate again: The NRG, and subsequent investigative units in SARS, were legally constituted and did admirable work to disrupt activities in the illicit economy. Its finances were approved transparently in the normal way Of SARS budgeting processes and was audited by the Auditor General every year.

SARS, during our time as managers, ensured at all times that the NRC and subsequent investigative units functioned within SARS legal and policy framework and within the laws of our country.

Issued by Ivan Pillay and Peter Richer, 2 March 2016