THE CAPTURE AND RESTRUCTURING OF THE SOUTH AFRICAN REVENUE SERVICE (SARS) - PPLAAF
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THE CAPTURE AND
RESTRUCTURING OF THE
SOUTH AFRICAN REVENUE SERVICE (SARS)
A report by The Platform to Protect Whistleblowers in Africa (PPLAAF)
www.pplaaf.org | info@pplaaf.org
24 March 2021Page 2
Introduction
In 2017, the Public Affairs Research Institute
The concept of State Capture was first (“PARI”) released the Betrayal of the Promise
identified in 2000 and defined as “the efforts report4, which described State Capture as
of firms to shape the underlying rules of the “systemic and well-organised by people with
game (i.e., legislation, laws, rules and established relations. It involves repeated
decrees) through private payments to public transactions, often on an increasing scale.
1
officials” . In South Africa, allegations of state The focus is not on small-scale looting, but on
capture have been at the forefront of public accessing and redirecting rents away from
sector investigations, media reporting and their intended targets into private hands. To
2
political discourse for decades . Initially, succeed, this needs high-level political
these allegations came from speculation and protection, including from law enforcement
hearsay in the media about the relationship agencies, intense loyalty and a climate of
between public officials and the Gupta family fear; and competitors need to be eliminated”.
but gained momentum with increased public
actions, such as the unlawful landing of A large part of being successful in these
private wedding guests of the Gupta family at aspects is the process of ‘repurposing’ state
a military base in 2013 and the removal of institutions. The concept of repurposing has
various executives and staff of key state been described by the PARI as “the
institutions and state-owned enterprises. organised process of reconfiguring the way in
which a given state institution is structured,
With the release of the then Public Protector, governed, managed and funded so that it
Adv Thuli Madonsela’s State of Capture serves a purpose different to its formal
3
report in October 2016 , many of the mandate”5. This definition will guide this
allegations of state capture were confirmed. report in the discussion on how SARS was
These allegations were further confirmed with captured and repurposed to benefit a specific
the release of the Gupta leaks in May 2017, a group of individuals linked to, in particular,
tranche of emails between Gupta family former Commissioner Tom Moyane and
members, their associates and public former President Jacob Zuma during his time
officials. as head of state between 2009 and 2018.
1
Hellman, J. S. *Jones. (2000). Measuring governance, Public Sector including Organs of State. Available at:
corruption, and State capture—How firms and bureaucrats https://resourcegovernance.org/sites/default/files/documents/
shape the business environment in transition economies (No. state-capture-in-transition.pdf
3
WPS2312; p. 1). The World Bank. Madonsela, T. ‘State of Capture’, Report by the Public
http://documents.worldbank.org/curated/en/24191146876561 Protector. Available at:
7541/Measuring-governance-corruption-and-State-capture- http://www.saflii.org/images/329756472-State-of-Capture.pdf
4
how-firms-and-bureaucrats-shape-the-business-environment- Bhorat, H., et al. ‘Betrayal of the Promise: How South Africa
in-transition-economies is being stolen’, Public Affairs Research Institute. Available at:
2
Further reference to understanding state capture: Hellman, https://pari.org.za/betrayal-promise-report/
5
J. and Kaufmann, D. ‘State Capture in Transition’, Bhorat, H., et al. ‘Betrayal of the Promise: How South Africa
Submission to the Judicial Commission of Inquiry into is being stolen’, Public Affairs Research Institute. Available at:
Allegations of State Capture, Corruption and Fraud in the https://pari.org.za/betrayal-promise-report/Page 3
Background to SARS SARS became a case study for many
academic papers and research worldwide,
The South African Revenue Service (“SARS”) and many developed states came to South
was formed in 1997 when the Customs and Africa to understand the gains made by SARS
Excise Department merged with the and imported these to their administrations.
Department of Inland Revenue. Although its One such study done for Princeton University
development started low key, within a decade by David Hausman7 outlined how between
of its formation, SARS grew into a highly 1998 and 2009, SARS improved tax
respected state institution, known for its compliance to such an extent, that they
efficiency and excellence in service delivery. increased the number of taxpayers from 2.6
SARS instilled either fear or awe in South million people to 4.1 million people. SARS
Africans depending on their compliance, and soon became the benchmark for similar
the trusted state of the organisation was international organisations and institutions.
largely due to the leadership6. The structure
and governance of SARS were designed to
be an instrument towards democracy and
economic freedom of South Africa, collecting
revenue for the government to deliver on the
promises to South Africans.
“…within a decade of its
formation, SARS grew into a
highly respected state institution,
known for its efficiency and
excellence in service delivery.”
6
Van Loggerenberg, J. and Lackay, A. Rogue, Jonathan Ball https://successfulsocieties.princeton.edu/sites/successfulsoci
Publishers, Jeppestown. 2016, Page 10 - 17 eties/files/Policy_Note_ID125.pdf
7
Hausman, D. ‘Reworking the Revenue Service: Tax
Collection in South Africa, 1999-2009’, 2010. Available at:Page 4
Repurposing and restructuring resigned in 1999 and remained in that
position until 2009. During his tenure, SARS
As previously outlined, repurposing of an was “one of the best run and most respected
organisation requires an organisation to be agencies of the South African government,
restructured and reconfigured to change the with a reputation for integrity and efficiency,
way it is governed, managed and funded to and tax receipts improved impressively during
serve a different purpose. To accomplish this Gordhan’s tenure”8.
reconfiguration, individuals involved in the
process need to be placed in strategic When former President Jacob Zuma was
positions. The appointments and dismissals elected in 2009, he appointed Gordhan as
of people in strategic leadership positions in Minister of Finance, where Gordhan quickly
SARS are therefore crucial. gained a reputation as great as his
predecessor, Trevor Manuel.
Appointments and dismissals
He was removed as Finance Minister
following the 2014 elections by then-
Since its establishment in 1997, SARS has
President Jacob Zuma and replaced with
had the following Commissioners heading up
Nhlanhla Nene (“Nene”).
the organisation:
George (“Oupa”) Magashula
Trevor van Heerden
George “Oupa” Magashula (“Magashula”)
In the establishment of the SARS in 1997,
was appointed SARS Commissioner from
Trevor van Heerden (“van Heerden”) was
May 2009 until July 2013, when he resigned.
appointed as the first Commissioner of SARS.
A small part of an illegal telephone recording
He retired in this position in 1998 and stayed
of Magashula on a cell phone passed to him
on as a specialist consultant at SARS, a role
by Timmy Marimuthu9, a convicted drug
which he fulfils to this day.
dealer and secret Crime Intelligence officer,
suggested Magashula was having an
Pravin Gordhan
inappropriate conversation with a potential
Pravin Gordhan (“Gordhan”) was appointed in
female employee10. This recording was
1998 as deputy SARS Commissioner to van
leaked to the media11. The allegations in the
Heerden. Gordhan was then appointed
press and Magashula’s conduct was
Commissioner shortly after van Heerden
8 10
Renwick, R. How to steal a country: State Capture and Yacoob, Z. & Sikhakhane, M. Fact Finding Inquiry into the
Hopes for the future in South Africa, Jacana Media, Auckland alleged improper conduct of the Commissioner of the South
Park, 2018, Page 39. African Revenue Services (SARS) Mr Oupa Magashula:
9
Harper, P. ‘Magashula wants answers’, News24, Available requested by the Minister of Finance. Available at: Report on
at: inquiry into Oupa Magashula - DOCUMENTS | Politicsweb.
11
https://www.news24.com/news24/southafrica/news/magashul Harber, A. So, for the Record: Behind the Headlines in an
a-wants-answers-20161008. Era of State Capture, Jonathan Ball Publishers, Jeppestown,
2020, page 98.Page 5
ultimately investigated by Justice Zak Yacoob Zuma, and certain current and former SARS
and Adv Musi Sikhakhane during an enquiry officials, had already been meeting, planning
into allegations against the SARS and discussing the restructuring of SARS not
Commissioner, commissioned by then long after Magashula’s departure in 201316.
Minister of Finance, Gordhan. One such key SARS official, who was to
become Moyane’s right-hand man after his
Ivan Pillay appointment, was Jonas Makwakwa. At the
Ivan Pillay (“Pillay”) was appointed acting time he was the SARS Audit Group
SARS Commissioner in July 2013, after Executive. Moyane was dismissed from
Magashula unexpectedly resigned. He SARS by President Cyril Ramaphosa in
resigned from SARS in May 2015 due to the 201817.
unfolding events related to the capture and
repurposing of SARS. Mark Kingon
Mark Kingon (“Kingon”) acted as SARS
Tom Moyane Commissioner following the suspension and
Tom Moyane (“Moyane”) is a close friend of dismissal of Moyane for a short while. In late
former President Jacob Zuma and his family12 2018 he publicly apologised to current and
and is best known in his position as the former SARS staff for the failure in leadership
Commissioner of Correctional Services at SARS, during the Commission of Inquiry
where he served until he was allegedly forced into Tax Administration and Governance in
to retire13 14
. He served as head of the 201818.
Government Printing Works and was key to
the panel that was tasked to investigate the Edward Kieswetter
unlawful landing of the infamous Gupta- In 2019, following the advertising of the
guests landing at the Waterkloof Military position and setting up of an interview panel
Airbase15. by former Finance Minister Nhlanhla Nene, a
former deputy SARS Commissioner who had
Former President Jacob Zuma appointed left SARS earlier for the private sector,
Moyane as SARS Commissioner on 25 Edward Kieswetter (“Kieswetter”), returned
September 2014. Moyane, together with and was appointed as SARS Commissioner.
12
Moyane, T. ‘Zuma’s late wife Kate was my ‘family sister’ – report/economy/moyane-takes-over-the-hot-seat-at-sars-
Tom Moyane’, Politicsweb, Available at: 1755608
16
https://www.politicsweb.co.za/news-and-analysis/zumas-late- Nugent, R. ‘Commission of Inquiry into Tax Administration
wife-kate-was-my-family-sister--tom-moy and Governance by SARS: Final Report’. December 2018.
13
Magome, M. ‘Axed prisons boss to walk away quietly’, IOL, Page 35
17
Available at: https://www.iol.co.za/news/politics/axed-prisons- Fin24. ‘Ramaphosa: Why I fired Moyane from SARS’. 2018.
boss-to-walk-away-quietly-1601333 https://www.news24.com/fin24/Economy/moyane-fired-over-
14
Mkhwanazi, S. ‘New SARS boss won’t sue minister over deeply-concerning-state-of-sars-ramaphosa-20181101
18
firing’, IOL, Available at: IOL. #SARSInquiry: Kingon holds back tears as he says
https://www.iol.co.za/dailynews/news/new-sars-boss-wont- sorry to SA. 2018. https://www.iol.co.za/business-
sue-minister-over-firing-1755354 report/economy/sarsinquiry-kingon-holds-back-tears-as-he-
15
Staff Writer. ‘Moyane takes over the hot seat at Sars’, IOL, says-sorry-to-sa-17553366
Available at: https://www.iol.co.za/business-Page 6
Apart from the commissioners employed at driving force behind creating the SARS
SARS, there were a few key role-players in structure in place today21.
the restructuring of SARS between 2014 and
2018. According to Cowan, there were also
allegations that he interfered with tax matters
Jonas Makwakwa of high-profile individuals, requesting that
Shortly after Moyane arrived at SARS, SARS officials write off penalties and interest
following a host of resignations by senior of individuals he was in contact with22.
executives, Jonas Makwakwa (“Makwakwa”)
was appointed as acting Chief Operating He resigned in 2018 when the media exposed
Officer (“COO”). This appointment effectively how he had been depositing cash into ATM’s
made him second in command to Moyane at on many occasions, earning unexplained
SARS and he would frequently step in as income and living well above his salary,
acting SARS Commissioner during Moyane’s unduly advancing the career of someone he
absence. Former SARS Group Executive for was having an affair with at SARS, amongst
Corporate Legal Services, Makungu other claims23.
Mthebule, described Makwakwa as very
powerful and that Moyane relied on him for Evidence also demonstrated how he
many things19. unlawfully and illegally shared data and
records of SARS, its inner-workings and staff
Makwakwa was appointed as COO of SARS details with Moyane and Bain & Company
in December 201420 and appeared to be before Moyane was appointed as
instrumental in Moyane’s actions to commissioner24. This evidence is to be given
restructure SARS, driving the expensive by Mr Atholl Williams (“Williams”), who was
renewal programme in SARS that Moyane contracted for 16 months to oversee Bain’s
embarked upon. He worked closely with Bain investigation into their contracts and work
& Company, who was appointed to develop a with the SARS and their reporting to the
new operating model and was part of the Commission of Inquiry into Tax
Administration and Governance by the South
19
Nugent, R. ‘Commission of Inquiry into Tax Administration at: https://www.news24.com/fin24/economy/sars-inquiry-
and Governance by SARS: Final Report’. December 2018 hears-how-jonas-makwakwa-tried-to-meddle-in-vip-taxpayer-
20
SARS. Resignation of SARS COO. 2014. Available at: affairs-20180628
23
https://www.sars.gov.za/Media/MediaReleases/Pages/PRET Van Wyk, P. ‘Scorpio: the Makwakwa Dossier, Part 2 –
ORIA%202%20December%202014%20%E2%80%94%20Th SARS No 2 was paid a bonus worth nearly R1million…while
e%20South%20African%20Revenue%20Service%20(SARS) on suspension’, Daily Maverick, Available at:
%20wishes%20to%20anno2-December-2014---Resignation- https://www.dailymaverick.co.za/article/2017-11-23-scorpio-
of-SARS-COO.aspx the-makwakwa-dossier-part-2-sars-no-2-was-paid-a-bonus-
21
Van Wyk, P. ‘Jonas Makwakwa’s swift rise to power, and worth-nearly-r1-million-while-on-suspension/
24
his abuse of it’, Daily Maverick, Available at: Williams, A. ‘Statement for Judicial Commission of Inquiry
https://www.dailymaverick.co.za/article/2018-06-29-jonas- into Allegations of State Capture, Fraud and Corruption’, para
makwakwas-swift-rise-to-power-and-his-abuse-of-it/ 113.
22
Cowan, K. ‘SARS Inquiry hears how Jonas Makwakwa tried
to meddle in VIP taxpayers affairs’. 2018. News24, AvailablePage 7
African Revenue Service (“Nugent In 2018, it was exposed how he had used
Commission”). It is, however, important to almost R1million of taxpayer funds to mount
note that the testimony of Mr Williams has yet a campaign to defend himself at the Nugent
to be tested through cross-examination. Commission which was never properly
justified or approved29 30
. He was one of
Luther Lebelo several senior executives suspended in 2019,
According to van Loggerenberg in his book and he resigned following an agreement with
Rogue, following Moyane’s arrival at SARS, SARS that no further actions would be taken
he allegedly began to increasingly rely on against him31.
Labour Relations executive Luther Lebelo
(“Lebelo”) as a spokesperson for SARS, side- Summary of the events
lining official SARS spokesperson Adrian
Lackay25. Lebelo and Makwakwa were One of the primary questions for this report is
among Moyane’s closest confidants. why “capture and repurpose” SARS?
Ultimately Lebelo became the de facto According to Foley, there are several possible
spokesperson for SARS after Lackay was motives for capturing SARS32, including but
instructed in February 2015 not to speak on not limited to:
any matters related to employment at ● aiming to weaken tax enforcement
26
SARS . Lebelo was also promoted to the particularly to the benefit of individuals in
role of head of Human Resources. In that past conflict with SARS enforcement;
position, he would have been involved in the ● using SARS as a means to target political
suspensions of Pillay, Richer, van opponents;
Loggerenberg and Gene Ravele carried out ● extract the ‘rents’ from the state, either by
by Moyane who, according to the Nugent lowering tax claims or by inflating
Commission report, “was bent on driving refunds; and
27
them out of SARS” . Lebelo also attended ● having access to personal information,
meetings with taxpayers that were politically as the nature of SARS business meant
28
connected for reasons never explained . that there was extensive access to both
25
Van Loggerenberg, J. and Lackay, A. Rogue, Jonathan Ball https://www.news24.com/citypress/business/judge-nugent-
Publishers, Jeppestown. 2016, Page 4-5 sars-is-spending-taxpayer-money-like-water-20181021
26 30
Nugent, R. ‘Commission of Inquiry into Tax Administration Nugent, R. ‘Commission of Inquiry into Tax Administration
and Governance by SARS: Final Report’. December 2018, and Governance by SARS: Final Report’. December 2018,
page 89. page 15
27 31
Nugent, R. ‘Commission of Inquiry into Tax Administration SARS. ‘Media Statement’, 2019. Available at:
and Governance by SARS: Final Report’. December 2018, https://www.sars.gov.za/Media/MediaReleases/Pages/2-
page 90 October-2019---Ms-Makhekhe-Mokhuane-and-Mr-Lebelo-
28
Van Wyk, P. Scorpio: The curious case of ANC benefactor resign.aspx
32
Robert Huang, a never-ending investigation and billions owed Foley, R. ‘The Role of Bain and KPMG in capturing SARS’,
to SARS. 2018. Available at: Ahmed Kathrada Foundation Seminar: How Business
https://www.dailymaverick.co.za/article/2018-01-23-scorpio- Enabled State capture, 2019, Available at:
the-curious-case-of-anc-benefactor-robert-huang-a-never- https://www.kathradafoundation.org/2019/10/03/bussiness-
ending-investigation-and-billions-owed-to-sars/ enabled-capture-presentation/
29
Brown, J. Judge Nugent: SARS is spending taxpayer
money ‘like water’. 2018. Available at:Page 8
personal and financial information of discussed above to capture and repurpose
individuals and businesses, which would SARS, the protagonists in this report were
provide a life-style overview of all successful.
registered taxpayers.
Culture of fear
To achieve the above, Foley, a researcher at
the Centre for Complex Systems in Before Moyane taking over as Commissioner
Transition, described in a presentation how, of SARS, the morale and pride in those
for SARS to be captured, the existing working at SARS were very high. Those who
structures and investigative and enforcement worked at SARS between its inception in
capacity of SARS would need to be 1997 and 2014 believed that working at
dismantled, control of the organisational SARS was building on democracy and
functions would need to be centralised and working for “the higher purpose”, a phrase
managed by individuals’ part of the capture coined and promoted by Gordhan when he
strategy, and a culture of fear would need to was Commissioner, and later perpetuated by
be created to keep other employees with both Magashula and Pillay34. Some
33
integrity from speaking up . It seems that, in comments by employees, as outlined in the
line with the requirements Nugent Commission Report35:
Name of Employee Comments
Ms Seremane ‘Well, I think it's the brand, SARS, the reputation SARS but certainly,
• joined SARS in 2009 as the it was the drive to actually contribute to the country realising that we
executive for integrity promotion; have such a good institution that performs and [was] laying such a
and critical role in the country and I wanted to be part of that to contribute
• was subsequently dismissed. to the country’
Mr Ndlangalavu ‘There was a vibrancy, ma’am. People wanted to join the unit and
• joined SARS in 2001. the excitement and joy and SARS people I still want to believe even
now are proud to work for SARS. I am a proud SARS official despite
the challenges.’
Ms Mthebule ‘To summarise, I would say I had lots of fun […]. You know cohesion
• a trained lawyer who joined that existed among colleagues, having leadership of a certain quality.
SARS in 2008. People you felt you could look up to and learn from. I was a happy
employee. Moreover, at that stage Minister Gordhan was talking
about that term he liked, higher purpose […]. I had support from
colleagues, from bosses. I wasn’t scared of approaching anybody.’
33 34
Foley, R. ‘The Role of Bain and KPMG in capturing SARS’, Nugent, R. ‘Commission of Inquiry into Tax Administration
Ahmed Kathrada Foundation Seminar: How Business and Governance by SARS: Final Report’. December 2018
35
Enabled State capture, 2019, Available at: Nugent, R. ‘Commission of Inquiry into Tax Administration
https://www.kathradafoundation.org/2019/10/03/bussiness- and Governance by SARS: Final Report’. December 2018
enabled-capture-presentation/Page 9
“The hallmark of good governance in an institution is the existence
of a culture of healthy dissent.
Mr Moyane substituted instead a culture of fear and intimidation.”
Nugent Commission Report
However, after Moyane secured control as Current SARS Commissioner, Kieswetter,
Commissioner of the organisation in stated in his presentation to the Standing
September 2014 with Zuma’s blessing, he Committee on Finance on 4 July 2019 on the
seems to have intentionally begun to weaken state of SARS38, “Internally, the organisation
the organisation, with over 2000 experts has been traumatised… A climate of fear and
resigning over three years, 550 of which had intimidation has been installed in the
retired and approximately 600 facing organisation, racial tensions are palpable.
disciplinary action36. The post-2014 SARS People openly talk about trauma.” Kieswetter
was filled with fear, suspicion and distrust, further outlined the internal culture of SARS
with many employees not wanting to testify at as one lacking trust in the leadership, full of
the Nugent Commission because of fear for racial tension, intimidation and fear, and that
their jobs. many staff appeared to have a ‘broken
spirit’39. He further stated: “The deliberate
Mr Ndlangalavu recounted how, early in his process of weakening SARS was initiated by
tenure, Mr Moyane had a plethora of CCTV the bogus claim of a Rogue Unit and the
cameras installed, such that employees felt Nugent outcome speaks of denuding the
themselves under constant surveillance, so organisation of skills”. For SARS to be fully
much so that some employees took to functional again, decades of stripping of skills,
covering the camera lenses on their morale and capacity would need to be
computers with tape, lest they be watched reversed and governance structures rebuilt.
while they went about their work, fearful of This climate of fear has been seen at several
any perceived misdemeanour that might state institutions across South Africa, as part
result in disciplinary proceedings37. of the modus operandi when certain groups of
36 38
Foley, R. ‘The Role of Bain and KPMG in capturing SARS’, Merten, M. ‘Rebuilding SARS one step at a time: Kieswetter
Ahmed Kathrada Foundation Seminar: How Business tells MPs of a culture of fear and loathing’, Daily Maverick,
Enabled State capture, 2019, Available at: Available at: https://www.dailymaverick.co.za/article/2019-07-
https://www.kathradafoundation.org/2019/10/03/bussiness- 04-rebuilding-sars-one-step-at-a-time-kieswetter-tells-mps-of-
enabled-capture-presentation/ a-culture-of-fear-and-loathing/
37 39
Nugent, R. ‘Commission of Inquiry into Tax Administration Khumalo, S. ‘Culture of fear and racial tensions at SARS,
and Governance by SARS: Final Report’. December 2018. says Kieswetter’, Fin24, Available at:
page 25. https://www.news24.com/fin24/economy/culture-of-fear-and-
racial-tension-at-sars-says-kieswetter-20190605-2Page 10
individuals attempt to capture and repurpose According to SARS employees testifying at
state organisations. This has been the Nugent Commission, SARS’ compliance
particularly highlighted at the Judicial and operating models were successful before
Commission of Inquiry into Allegations of Moyane’s appointment in 2014. Upon
State Capture, Fraud and Corruption (“Zondo entering SARS, he immediately got to work
Commission”), where dozens of witnesses on a total overhaul of SARS’ structure and
have testified to the culture of fear created in compliance and operating model. It is
state-owned entities. estimated that, due to Moyane’s actions, by
2017 SARS was experiencing a revenue
Change of SARS operating model deficit of at least R50-billion, with predictions
of that number growing41.
Before Moyane took over as Commissioner in
2014, SARS based its compliance model on Bain & Company Inc and the
three aspects, namely Service, Education
restructuring of SARS
and Enforcement40. Superimposed over this
model was the continued modernisation of Bain & Company Incorporated (“Bain”) is a
information technology advances, electronic global management consulting company,
filing, and segmentation of the tax base based in Boston, Massachusetts, USA. They
according to small businesses, individuals, are considered to be one of three big
tax practitioners, medium-sized enterprises consulting companies in the world, including
and large businesses. The underlying McKinsey and Company (“McKinsey”)42 and
philosophy of the model was to always the Boston Consulting Group (“BCG”).
encourage taxpayers to do the right thing, by
providing a convenient and easy to use According to the Nugent Commission report43
service offering and educating people on and the statement by Williams to be
compliance. The enforcement strategy had presented at the Zondo Commission, Bain
three parts, namely reaching all taxpayers in had been trying to get into public sector
all corners of the country, having the capacity business for some time.
to deal with complex tax crimes, and being
able to leverage relationships with law Williams is a Senior Lecturer at the University
enforcement to prosecute those in of Cape Town, Graduate School of Business
contravention of tax and customs laws. in the Allan Gray Centre for Values-Based
40 42
Van Loggerenberg, J. and Lackay, A. Rogue, Jonathan Ball It is of interest to note that McKinsey is also widely
Publishers, Jeppestown. 2016, page 16-17. implicated in State Capture activities in South Africa,
41
Van Wyk, P. ‘Scorpio: the Makwakwa Dossier, Part 2 – particularly in relation to advisory contracts with SOEs. A
SARS No 2 was paid a bonus worth nearly R1million…while question could be asked about the organisational culture of
on suspension’, Daily Maverick, Available at: these consulting companies and their actions and behaviour
https://www.dailymaverick.co.za/article/2017-11-23-scorpio- in developing countries.
43
the-makwakwa-dossier-part-2-sars-no-2-was-paid-a-bonus- Nugent, R. ‘Commission of Inquiry into Tax Administration
worth-nearly-r1-million-while-on-suspension/ and Governance by SARS: Final Report’. December 2018,
page 33Page 11
Leadership. He lectures and conducts Stakeholder Management” contract with
research in Corporate Responsibility, Ethical Ambrobrite (Pty) Ltd, now known as
Leadership, and is a Research Fellow in the Kanoboya Consulting (CIPC number:
Centre for Applied Ethics at Stellenbosch 2009/020492/07) (“Ambrobrite”)44.
University. He has worked as a management Ambrobrite had two directors, namely
consultant for over 15 years at various Dumakude Mayivuke Ndlovu (“Ndlovu”), a
organisations including Bain. He has also well-known businessman in the entertainment
held senior executive roles at Old Mutual, Rio and television industry, and a close friend of
Tinto in London and RMB Corvest. He was a Zuma, and Mpumelelo Njabulo Ngema
former independent contractor to Bain, (“Ngema”) 45.
working from September 2018 until
December 2019 to perform an oversight role Ambrobrite was also co-owned by creative
of Bain’s investigation into their contracts and artist Mr Mandla KaNozulu (“KaNozulu”)46 47
.
work at SARS. He was also a part-time William claims to have found that, according
employee as a Partner in the South African to KaNozulu’s website, media reports and a
business, serving on the Bain Africa Bain email48, he served as the Special
Oversight Board from 15 May to 28 August Advisor to the Minister of Police, Mr Nathi
2019. Nhleko.
Based on his experience and position, The head of the local office of Bain in South
Williams assisted the Nugent Commission Africa, Vittorio Massone (“Massone”),
with their investigation and submitted a disclosed to Nugent that he had multiple
statement to the Zondo Commission meetings with former President Jacob Zuma
concerning his findings whilst consulting at (“Zuma”) between 2012 and 2014, the first of
Bain. Williams is scheduled to give evidence which was arranged on 11 August 2012 by Mr
at the Zondo Commission, and Bain has Sipho Maseko (“Maseko”)49 50. This meeting
applied to cross-examine Williams. was also attended by Ndlovu. According to
Atholl Williams (“Williams”), in his statement
To assist in entering the public sector, Bain to the Zondo Commission51, Massone spoke
entered a “Business Development and widely and proudly of his proximity to Zuma.
44 49
Williams, A. ‘Statement for Judicial Commission of Inquiry Sipho Maseko was CEO of Telkom. He was also briefly
into Allegations of State Capture, Fraud and Corruption’, para considered for the position of GCE at Transnet under the
46. tenure of Barbara Hogan but retracted his interest. Brian
45
Williams, A. ‘Statement for Judicial Commission of Inquiry Molefe was eventually appointed as GCE of Transnet.
50
into Allegations of State Capture, Fraud and Corruption’, para Nugent, R. ‘Commission of Inquiry into Tax Administration
46. and Governance by SARS: Final Report’. December 2018,
46
Nugent, R. ‘Commission of Inquiry into Tax Administration page 35, para 25
51
and Governance by SARS: Final Report’. December 2018, Williams, A. ‘Statement for Judicial Commission of Inquiry
page 35, para 33 into Allegations of State Capture, Fraud and Corruption’, para
47
Mandla KaNozulu is also known as Mandla Kheswa. 76
48
Williams, A. ‘Statement for Judicial Commission of Inquiry
into Allegations of State Capture, Fraud and Corruption’, para
46.Page 12
Williams further confirmed that the global restructuring which, in my view, was aimed at
leadership of Bain was all aware of the bringing as many organisations and as many
meetings with Zuma and it was well known financial resources under more concentrated
that the relationship with Ndlovu and control, which would greatly facilitate state
Ambrobrite was to create connections with capture. Much like Bain did at SARS […], the
Zuma and other politically connected people. restructured public entities would be
repurposed to serve an agenda most likely
Bain acknowledged these meetings in a not in the public interest. Bain labelled these
public statement on 17 December 2018, plans “reshaping the South African economy.”
outlining that Massone claimed to have had Bain also formulated plans to reshape the
12 meetings with Zuma between 2012 and South African government, seeking to
201452. However, Williams believed that this centralise procurement processes in state
number was understated, as it appeared that institutions. According to Williams, an email
between 2012 and 2015, Bain from Massone on 18 January 201456 appears
representatives were meeting regularly with to reveal how Bain had sight of plans for the
Zuma and his associates to actively create large-scale restructuring of public
strategies and documents/proposals for the institutions57.
restructuring of state agencies and entities,
alongside plans to structure entire sectors of It was further discovered that Bain
the South African economy53. In these representatives were meeting with Moyane
meetings, amongst other things, they also and Zuma more than a year before Moyane
discussed “Project Phoenix”, a strategy was appointed to SARS58. Massone
aimed at getting more public sector confirmed to the Nugent Commission that the
business54. first engagements with Bain were in 2013
before Moyane was removed from
According to Williams55 “While claiming that Correctional Services, for so-called ‘CEO
such restructuring would offer economic coaching’ with a particular focus on what to do
benefits and service improvement to South as SARS Commissioner59.
African society, the consistent theme is that of
52 55
Khumalo, S. ‘5 key takeaways from Bain’s statement on Williams, A. ‘Statement for Judicial Commission of Inquiry
SARS’, Fin24, Available at: into Allegations of State Capture, Fraud and Corruption’, page
https://www.news24.com/fin24/companies/financial- 30
56
services/5-key-takeaways-from-bains-statement-on-sars- Williams, A. ‘Statement for Judicial Commission of Inquiry
20181218 into Allegations of State Capture, Fraud and Corruption’, para
53
Williams, A. ‘Statement for Judicial Commission of Inquiry 81
into Allegations of State Capture, Fraud and Corruption’, page
58
28 and Nugent, R. ‘Commission of Inquiry into Tax Nugent, R. ‘Commission of Inquiry into Tax Administration
Administration and Governance by SARS: Final Report’. and Governance by SARS: Final Report’. December 2018.
December 2018, page 34 Page 33-34
54 59
Nugent, R. ‘Commission of Inquiry into Tax Administration Foley, R. ‘The Role of Bain and KPMG in capturing SARS’,
and Governance by SARS: Final Report’. December 2018, Ahmed Kathrada Foundation Seminar: How Business
page 35. Enabled State capture, 2019, Available at:
https://www.kathradafoundation.org/2019/10/03/bussiness-
nabled-capture-presentation/Page 13
In the year before Moyane’s appointment at outlines that a SARS official may not disclose
SARS, he met with a Bain representative, at taxpayer’s information or SARS confidential
least four times to discuss several aspects, information other than for specific
including the actions of the first 100 days at circumstances64.
SARS and developing a restructuring plan for
SARS60. According to Williams, Bain The ‘diagnostic’ and restructuring plan
produced four documents for Moyane before
Moyane was appointed SARS Shortly after Moyane’s appointment in
61
Commissioner . One presentation document October/November 2014, Moyane appointed
dealt with what Moyane had to do within his Bain to review the SARS operating model,
62
first 100 days at SARS , including identifying whilst at the same time disbanding the
and “neutralising” persons who were executive committee of SARS65 based on
identified as “problematic” and “watch out” for several reports published by the Sunday
others. The second document set out, with Times newspaper, which have since proven
little to no proper research and no false. Nugent commented in his interim report
engagement with SARS at that time, the that using newspaper reports to disband the
deficiencies in the internal structure of SARS executive of SARS was ‘extraordinary in any
and how to alter and change it. rational terms66.
Makwakwa was also present in the meetings According to Williams, it appears Bain knew
with Bain and shared information with them they would be appointed for this review, going
that helped Bain formulate the as far as “pre-identifying teams” to work on
63
recommendations for restructuring . At the the projects. The request for proposal (RFP)
time, Makwakwa was an employee of SARS, for this review was issued on 12 December
and he allegedly handed SARS information 2014 and titled “Consultancy Services to
over to the Bain representative and Moyane. Review the SARS Operating Model67.”
This exchange of information was in Evidence indicates that Bain had already
contravention of Chapter 6 of the Tax written the draft for the RFP two months
Administration Act, No. 28 of 2011, which before. Furthermore, Williams states that a
60 65
Nugent, R. ‘Commission of Inquiry into Tax Administration Sole, S. SARS set for ‘rogue unit’ showdown. 2015.
and Governance by SARS: Final Report’. December 2018. Available at: https://mg.co.za/article/2015-04-30-sars-set-for-
Page 35 – 38. rogue-unit-showdown/ and Nugent, R. ‘Commission of Inquiry
61
Williams, A. ‘Statement for Judicial Commission of Inquiry into Tax Administration and Governance by SARS: Final
into Allegations of State Capture, Fraud and Corruption’, para Report’. December 2018, page 75
66
109 Ryan, C. ‘Tom Moyane fired, leaving SARS in a state of
62
Nugent, R. ‘Commission of Inquiry into Tax Administration “intrigue, fear, distrust and suspicion”. 2018. Available at:
and Governance by SARS: Final Report’. December 2018. https://accountingweekly.com/tom-moyane-fired-leaving-sars-
Page 37 in-a-state-of-intrigue-fear-distrust-and-suspicion/
63 67
Williams, A. ‘Statement for Judicial Commission of Inquiry Williams, A. ‘Statement for Judicial Commission of Inquiry
into Allegations of State Capture, Fraud and Corruption’, para into Allegations of State Capture, Fraud and Corruption’, para
113 122
64
Nugent, R. ‘Commission of Inquiry into Tax Administration
and Governance by SARS: Final Report’. December 2018,
page 132.Page 14
document dated October 2014 and titled “The new organisational structure of
“South African Revenue Service / Strategy SARS was often called the ‘new
and Operations review / Request for operating model’ but that is a misnomer.
Proposal” was retrieved from a Bain computer An operating model is a strategy upon
by Baker McKenzie during their which a structure is built. There was no
68
investigation . new strategy upon which the structure
was rebuilt by Bain. It did no more than
Bain began their work immediately to produce restructure the organisation, based
a diagnostic evaluation report for the largely, according to Mr Massone, upon
restructuring of SARS. According to the what Bain considered to be ‘best
Nugent Report, the entire process was kept practice’, drawn from Bain’s second-
secret from the various division managers, hand knowledge of other tax collection
with Moyane instructing who Bain should talk agencies, with little insight, nor any
to, under the eye of a steering committee apparent interest, into why SARS had
headed by Makwakwa69. Bain conducted been structured in the way in which it
interviews with 33 employees over only six was, and in what direction SARS was
days, an inadequate sample to take out of headed.”
70
14000 SARS officials . Managers who gave
evidence at the Nugent Commission all stated Also, according to Williams, it appears that
that they were either not consulted or Bain misrepresented the depth of their
consulted in a perfunctory manner on the expertise, with the team working at SARS
diagnostic process, and ultimately could not having no discernible experience in tax
understand why the organisation needed agencies73. Essentially, thanks to their lack
restructuring71. of research and understanding, Bain provided
a restructuring plan for SARS that weakened
Ultimately, the original SARS operating model oversight and destroyed a large part of SARS’
was stripped of its effectiveness. According capacity, side-lining key senior executives
to Judge Nugent72: and downsizing the SARS Business Centre74.
68 72
Williams, A. ‘Statement for Judicial Commission of Inquiry Nugent, R. ‘Commission of Inquiry into Tax Administration
into Allegations of State Capture, Fraud and Corruption’, para and Governance by SARS: Final Report’. December 2018,
124 page 51
69 73
Nugent, R. ‘Commission of Inquiry into Tax Administration Williams, A. ‘Statement for Judicial Commission of Inquiry
and Governance by SARS: Final Report’. December 2018, into Allegations of State Capture, Fraud and Corruption’, para
page 50 138
70 74
Van Wyk, P. For Moyane and Zuma, Bain was a team Marian, N. ‘Sars and Treasury to pursue criminal charges
player. 2018. Available at: against Bain & Co’, Mail and Guardian, Available at:
https://www.dailymaverick.co.za/article/2018-09-04-for- https://mg.co.za/article/2019-07-02-sars-and-treasury-to-
moyane-and-zuma-bain-was-a-team-player/ pursue-criminal-charges-against-bain-co/
71
Nugent, R. ‘Commission of Inquiry into Tax Administration
and Governance by SARS: Final Report’. December 2018,
page 49Page 15
Bain proposed four different new structures, d. Fragmenting functions within the
but adopted a proposed fifth structure, largely Large Business Centre which offered
influenced by Moyane himself75. The new end-to-end service to SARS clients.
structure made the following changes, inter Professor Nel of the South African
alia: Institute of Tax Practitioners told the
Nugent Commission that this
a. Combined all taxpayers’ affairs (both ultimately led to inefficiencies in SARS
individual and business) into one processes and declining taxpayers’
division known as the Business and morality and compliance, because of
Individual Tax (“BAIT”) unit. This unit the frustration experienced by large
was ultimately headed up by businesses in particular when not
Makwakwa (Chief Officer); getting the efficient service they had
b. According to Dr Malobhele, head of previously experienced78. This
the Compliance Division at SARS, the statement supported submissions
fragmentation of the compliance from other representatives of
division and the disbanding of the professional bodies such as Mr Retief,
compliance research unit ultimately who is the chair of the National Tax
meant there was no compliance Committee of the South African
programme for the newly established Institute of Professional Accountants.
BAIT unit76;
c. Customs oversight diminished so The Large Business Centre generated
drastically that inspection processes approximately one-third of SARS’ tax-related
went from two days to 23 days, revenue79.
resulting in a massive decline in
customs revenue collection77;
75 79
Nugent, R. ‘Commission of Inquiry into Tax Administration De Greeff, K. ‘Boston firm admits ‘massive failure’ in plan to
and Governance by SARS: Final Report’. December 2018, aid South Africa tax agency’, New York Times, Available at:
page 50 https://www.nytimes.com/2018/09/02/world/africa/south-
76
Nugent, R. ‘Commission of Inquiry into Tax Administration africa-tax-agency-bain.html and Umraw, A. ‘Nugent
and Governance by SARS: Final Report’. December 2018, recommends criminal proceedings over SARS contract with
page 53 global consultancy firm Bain’, Times live, Available at:
77
Nugent, R. ‘Commission of Inquiry into Tax Administration https://www.timeslive.co.za/politics/2018-12-14-nugent-
and Governance by SARS: Final Report’. December 2018, recommends-criminal-proceedings-over-sars-contract-with-
page 55 global-consultancy-firm-bain/
78
Nugent, R. ‘Commission of Inquiry into Tax Administration
and Governance by SARS: Final Report’. December 2018,
page 52-53Page 16
As a result of this restructuring, SARS has
been experiencing massive shortfalls in tax
revenue collection. The difference in annual
collections can be seen below80:
10.6
9.6
8.5
6.9
6.3
5.9
1.07 1.14 1.22 1.29
0.90 0.99
2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019
Annual increase in Tax Revenue Collection (%)
Revenue Collected (ZAR trillion)
This shortfall also seemingly resulted in the “In the past, we could have brought a
first increase in VAT in 2018 since democracy preservation order on a group of
in 1994, from 14% to 15% to try and cover the companies with maybe four or five
shortfalls in tax collection. This increase signatures or six. Now we need anything
affected South African’s at every level, but in between eight and 12 signatures. So, I
particular, disproportionately affecting the can assure you we’ve lost, and I’ll show
poor and vulnerable81. you a submission, we have lost possibly
hundreds of millions of Rands over the
The effect on Enforcement, one of the pillars last few years because of these
of the previous structure of SARS, was inefficiencies. Legal counsel approval
severe. Mr Dion Nannoolal of debt takes 1 month to a year for approval on
enforcement told the Nugent Commission82: memos. In summary, it could take up to
80 81
One is aware that there are many factors that may lead to a De Greeff, K. ‘Boston firm admits ‘massive failure’ in plan to
declining increase in year-on-year tax collection, but one aid South Africa tax agency’, New York Times, Available at:
factor that could be attributed to this is the downsizing of the https://www.nytimes.com/2018/09/02/world/africa/south-
business centre. SARS Tax Statistics 2013 – 2019. Available africa-tax-agency-bain.html.
82
at: https://www.sars.gov.za/About/SATaxSystem/Pages/Tax- Nugent, R. ‘Commission of Inquiry into Tax Administration
Statistics.aspx and Governance by SARS: Final Report’. December 2018,
page 54Page 17
three years after the original expected to take six to twelve months85.”
transgression to proceed with a This was before Moyane took office at SARS
preservation order (as an example) or to and the RFP was even issued.
commence collection steps.”
The diagnostic of SARS took only six weeks
Nugent also commented that Moyane and cost approximately R2.38 million86.
seemed to dismantle the governance of Judge Nugent raised major concerns with the
SARS, through this ‘restructuring’, reckless fairness of the appointment of Bain87,
mismanagement and the destruction of considering they knew about the project four
institutional knowledge at SARS, by removing months before it was released, and added a
many individuals that had helped build SARS 50% discount to their fee to become in just
over the previous 20 years and displacing below the next lowest bidder and come out
around 200 managers from their jobs83. The the most competitive. But it appears that they
Nugent Commission also questioned the cut costs under the promise of Bain receiving
approach, methodology and value of the the contract for “Phase 2”, where they would
restructuring plan produced by Bain, be able to “remove” the discount and charge
considering they seemed to ignore at the full rate. Bain was appointed to continue
84
international benchmarks and limited their with “Phase 2” at a fee of R164 million, the
interaction with critical SARS staff members. actual restructuring of SARS, using a
deviation process and not following proper
Bain’s pricing tender procedures. According to Nugent88:
Bain appeared to have seen this restructuring “Although the Bid Adjudication
project as a way to generate more business Committee had been told the appointed
with SARS, regardless of whether it was service provider for phase 1 must ‘give
needed. What came out of the Nugent recommendations that can be
Commission is that on 28 August 2014, Bain implemented by any service provider not
sent an email stating that they were to them alone,’ and that any later work
“undertake an ‘operational/strategic arising from phase 1 would be ‘go to
assessment’ of SARS, to set a platform for a market again’, that is not what occurred,
‘broader SARS transformational program’ nor was it intended by the conspirators to
83 83 86
Nugent, R. ‘Commission of Inquiry into Tax Nugent, R. ‘Commission of Inquiry into Tax Administration
Administration and Governance by SARS: Final Report’. and Governance by SARS: Final Report’. December 2018,
December 2018, page 4 page 50, page 44
84
Nugent, R. ‘Commission of Inquiry into Tax Administration
87
and Governance by SARS: Final Report’. December 2018, Nugent, R. ‘Commission of Inquiry into Tax Administration
page 21-26 and Governance by SARS: Final Report’. December 2018,
85
Nugent, R. ‘Commission of Inquiry into Tax Administration page 47
88
and Governance by SARS: Final Report’. December 2018, Nugent, R. ‘Commission of Inquiry into Tax Administration
page 50. and Governance by SARS: Final Report’. December 2018,
page 50Page 18
occur. Instead, phase 2 was awarded modernisation program. The Nugent Report
through a deviation from the ordinary outlines some of the extensive hand-over
procurement process, on spurious notes that Hore prepared, before his
grounds, that earned Bain approximately departure in January 2015, on the direction
R164 million calculated at its ordinary and future of the Modernisation
91
rates less an initial discount of 12%.” Programme :
The only way that phase 2 could have been 1. The Modernisation Programme was to
confined to Bain is if it was an emergency or run in three phases. The initial phase
Bain was the only supplier. According to the required SARS to create capacity,
Nugent Commission report, it seemed neither design the programme in detail and
was true and from these actions, it appeared prepare the organisation for
that Moyane and Makwakwa did not intend to modernisation. In the next phase,
89
return to the market for phase two . It is SARS would implement the new
important to note that part of this restructuring business model throughout the
process did not include Information organisation. The final phase of the
Technology Systems (“ITS”) requirements. Modernisation Programme was the
Contracts to restructure ITS were given to delivery of world-class technology-
Gartner. driven services to support SARS’ new
business model.
Modernisation program and Gartner 2. The Modernisation summary states
“SARS anticipates further benefits with
Part of the development of SARS was a
the Modernisation Programme in the
modernisation program that began back in
next few years. These will be achieved
200490, with a simple e-filing system. This
by overhauling the systems and
modernisation program became one of
processes yet to be addressed by the
SARS’ greatest strengths, implementing
modernisation programme, refining the
information technology systems that assisted
innovations already implemented and
SARS in its mandate and identified areas that
introducing further new services and
required enforcement much quicker than
facilities.”
before.
The modernisation program aimed to improve
Barry Hore (“Hore”) who was the Chief
the performance of SARS in service;
Operating Officer (“COO”) of SARS, drove the
enforcement and compliance; and cost
89 91
Nugent, R. ‘Commission of Inquiry into Tax Administration Nugent, R. ‘Commission of Inquiry into Tax Administration
and Governance by SARS: Final Report’. December 2018, and Governance by SARS: Final Report’. December 2018,
page 46 page 61
90
Van Loggerenberg, J. Death and Taxes, Jonathan Ball
Publishers, Jeppestown, 2018, page 102Page 19
efficiency, and that SARS would need to The appointment of Gartner
continually evolve, upgrade and refine the
technology to best meet the needs of the Gartner Inc (“Gartner”) is a global research
organisation’s operations. In September and advisory firm providing information,
2014, Pillay informed SARS employees that advice, and tools for leaders in IT, finance,
they had “approved the SARS modernisation HR, customer service and support,
programme comprising 25 projects, of which communications, legal and compliance,
8 are legally mandatory projects and 3 are marketing, sales, and supply chain functions.
collaborations with other government Gartner did not have much of a presence in
agencies. The list of projects under South Africa before 2016 but was
modernisation is now the baseline and may represented through a sales agent and local
only be amended with EXCO’s approval. senior managing partner Neville Willemse
EXCO will review progress on the projects (“Willemse”).
regularly. Several projects could not be
accommodated within the current Willemse told the Nugent Commission that
programme. The Programme Management Monyeki approached him around December
Office will maintain a list of the proposed 2014 about a new Commissioner that began
92
projects to plan for their implementation.” at SARS and had identified issues with the
However, despite the strides made with the modernisation program to be addressed94.
modernisation program and the success Monyeki specifically discussed with Willemse
SARS had already enjoyed, when Moyane details about an IT review contract SARS was
took over as Commissioner in 2014, he about to publish95. According to Willemse,
decided without consultation to appoint an Monyeki made it known to him that SARS
external service provider to conduct an specifically wanted Gartner to do an IT review
independent review of the SARS Operating of its systems and to draft the Terms of
Model, Structure and its Modernisation Reference for SARS96. Willemse admitted to
Programme93. Moyane also insisted that the the Nugent Commission that he was not sure
rollout of any further modernisation plans be why Monyeki was involved in managing the
stopped until he had completed this review. process, nor did Gartner enquire about his
involvement. They only knew that Monyeki
had a close relationship with Moyane97.
92 95
Nugent, R. ‘Commission of Inquiry into Tax Administration Van Wyk, P. ‘SARS Inquiry shines a harsh light on Gartner
and Governance by SARS: Final Report’. December 2018, Chiefs’, Daily Maverick, Available at:
page 62 https://www.dailymaverick.co.za/article/2018-10-24-sars-
93
Nugent, R. ‘Commission of Inquiry into Tax Administration inquiry-shines-a-harsh-light-on-gartner-chiefs/
96
and Governance by SARS: Final Report’. December 2018, It is highly irregular that a supplier would draft the terms of
page 63 reference for the contract they are bidding for.
94 97
Nugent, R. ‘Commission of Inquiry into Tax Administration Nugent, R. ‘Commission of Inquiry into Tax Administration
and Governance by SARS: Final Report’. December 2018, and Governance by SARS: Final Report’. December 2018,
page 65. page 65Page 20 There were two phases to the project, phase one being to conduct a review of the modernisation programme, with further phase two implementation projects. Gartner received the initial phase one contract for R12 million. The phase two contract was also secured by Gartner, for an additional approximately R144 million. Along with additional contracts, Gartner earned approximately R200 million in fees to review SARS’s information technology systems. Willemse also claimed that SARS requested that Gartner subcontract part of the work to a subcontractor from their preferred Broad- Based Black Economic Empowerment (B- BBEE) supplier list. The request was that 30% of the work was then subcontracted to Rangewave, a business belonging to Monyeki. It was however noted that there was no formal agreement between Rangewave and Gartner98. The IT system that was developed by Gartner was never implemented by SARS. 98 Nugent, R. ‘Commission of Inquiry into Tax Administration and Governance by SARS: Final Report’. December 2018, page 66-67
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