PPF STATEMENT ON SARS COMMISSIONER’S PRESS CONFERENCE
28 February 2017
Progressive Professional Forum (PPF) notes Mr Moyane's press conference of the 24th February and the allegations that emanate there. PPF, while perturbed is not surprised by the alleged embarrassing and shameful allegations about Minister Gordhan's treatment of Mr Moyane. Such complaints about Min Gordhan's demeaning of black professionals is well known in the professional circles, hence the PPF decided that it has gone too far and needs to be addressed as if he is not called upon on his unprofessional behaviour, he continues to conduct his reign of terror on especially black professionals and further divide SA.
His alleged behaviour is not only unprofessional but ludicrous. While Minister Gordhan is famous in the professional circles for flaunting his struggle credentials to intimidate people, his behaviour this time is also demeaning as Mr Moyane is himself a respected and respectful freedom fighter. To have Minister Gordhan allegedly shouting and screaming at him with such utter disrespect and immaturity is an indication of Mr Gordhan's failure to accept that he is no longer the Commissioner of SARS and Mr Moyane is and has performed well.
PPF is also concerned that Minister Gordhan misrepresents facts by blaming the R30.4 billion rands target reduction on Mr Moyane and SARS when he undoubtedly knows that the reason and cause for the reduction is due to the prevailing economic conditions, with the economy growing at less than 1.5%. Contrary to Mr Gordhan's flawed and emotional blame on SARS, growing the economy is not SARS mandate, but SARS' duty and responsibility is to collect the revenue whose success and performance depends on a growing economy, that National Treasury and by extension Min Gordhan are responsible for.
What is even more shameful and incredible is Mr Gordhan, focus on manufactured failures of SARS and distortion of facts aided and abetted by the oppositional and factional media. They continue to ignore the following key success stories in Mr Moyane's two year tenure as the Commissioner of SARS:
1. For two consecutive years; 2014/15 and 2015/16, SARS managed to outperform the economy. The highlight of this was the collection of the historical amount of over R1-trillion revenue in the 2015/16 financial year. It is the collection of over R1 trillion by SARS in the 2015/16 financial year that helped to reduce the country’s deficit. This also contributed to SA avoiding a rating agency downgrade, which Mr Gordhan deeply worships.
2. Despite SA facing a decline in GDP growth, during the revenue collections in 2015/16, SARS outperformed the economy representing a growth of 8.5% from the 2014/15 fiscal year and increasing the estimated tax to GDP ratio from 25.8% in Budget 2015, to 26, 3% as projected in Budget 2016. This level of tax extraction by SARS moved closer to the levels obtained during the commodity boom cycles in the mid-2000s
3. It was under Commissioner Moyane that clear and sustainable measures were put in place in dealing with the illicit economy and illicit financial flows, through engagements with regional Commissioners-General in Southern Africa through productive seminars and meetings.
4. Furthermore, it is under Mr Moyane that increased strong measures were put in place to deal with complex schemes used by large businesses to evade and avoid tax, low compliance of High Net Worth Individuals as well as addressing the prevalence of VAT refund fraud.
5. Minister Gordhan is also aware or ought to be aware that contrary to the media and prophets of doom's manufactured narrative that SARS under Moyane withholds tax refunds, a view with Mr Gordhan endorses; SARS under Moyane paid out 98% of VAT refund within 72hrs and 89% of refunds on others also within 72 hours.
6. In 2015/16 financial year, SARS under Commissioner Moyane was able to detect and stop VAT fraud of well over R12 billion, with R10 billions of Vat fraud being stopped thus far in the 2016/17 through SARS's risk engine, with more aimed to be stopped as the financial year comes to a conclusion.
7. It is under Commissioner Moyane that radical transformation through legal mechanisms such affirmative action and employment equity is unapologetically enforced, which has seen more blacks and black women being brought to the levels of seniority at a rate that has never been seen or achieved before in SARS history.
With the above undisputed facts and figures but the continuous attack by Minister Gordhan on SARS and Commissioner Moyane, PPF has no option but to conclude that Minister Gordhan suffers from professional jealousy, an egoistic feeling that him and him alone is capable of running an effective SARS, a dismal and hopeless endeavour to force facts, figures and history to lie or be distorted. While not under the mandate of PPF, as an organisation of professionals it is noted and disconcerting that despite all the above achievements by SARS under Moyane, Mr Moyane has apparently not as yet received his 2014/15 salary increase as well as his bonus like the rest of SARS employees, sadly when he, Mr Gordhan got his salary increase despite a badly performing economy.
PPF is further alarmed to learn that Minister Gordhan accused Black Business Council and Mr Moyane and his EXCO in two different and separate occasions of attempting to capture Treasury and serving a 'particular family'. Not only is this unprofessional and paranoia, it's a lame, meek tired and divisive narrative meant to deal with those who disagree with him. PPF wishes to warn the Minister Gordhan his paranoia is divisive and aimed at frustrating radical economic transformation by pro transformation organizations and individuals. The majority of South Africans are no longer fooled by red herrings Mr Gordhan likes throwing at anyone who disagrees with him alleging capture of these institutions and individuals by a 'family' in order to deflect attention from the substantive issues of lack of transformation.
PPF therefore calls Minister Gordhan to immediately cease with immediate effect from his unprofessional, inhumane and intimidatory conduct against Commissioner Moyane and organized Black business. We are once again calling on Mr Gordhan to further cease from his uncontrollable urge to interfere into the operational activities of SARS, an act which is in direct violation of the SARS Act.
Statement issued by Deputy-General Secretary of PPF, Mrs Zinhle Cele, 28 February 2017
