SARS RESPONSE TO M&G ARTICLE TITLED “SARS CHIEF TOM MOYANE NEPHEW LINKED TO PLUM R220 MILLION TAX DEBT COLLECTION CONTRACT”
Pretoria: 14 October 2016 - SARS has noted the M&G article “SARS chief Tom Moyane nephew linked to plum R220 million tax debt collection contract” which relates to the appointment of Lekgotla Trifecta Consortium (“LTC”) following an open tender process (see here).
We wish to categorically state that the report contains factual inaccuracies and untruths. SARS thus wishes to set the record straight by presenting the correct chronology of events.
SARS issued an open tender, RFP 28/2015, for the establishment of a panel of debt collection service providers. 11 (Eleven) service providers made it onto the panel, whereafter they were invited to submit proposals for the 6-month Pilot Project. LTC with another 2 (two) service providers, was subsequently appointed to collect oustanding tax debt older than 4 (four) years for this Pilot Project.
The allegation that LTC’s fee “could be about 10% or up to R220 million” is malicious and untrue. Each of the 3 (three) service providers for the Pilot Project were given R2.2 billion debt to collect with an agreed commission of a mere 3.88% plus VAT of actual debt collected by them.
On 18 August 2016 , SARS received a media query on the relationship between SARS Commissioner and Mr Ndhlela. SARS was not aware of the relationship and instituted an investigation into the tender award. The SARS investigation revealed that LTC failed to disclose the relationship between 1 (one) of its shareholders, Mr Nhlamulo Ndhlela, and the Commissioner on the required National Treasury mandatory SBD 4 (Declaration of Interest) form, despite the SBD4 form specifically requesting such disclosure.