SARS Spent Over R23m On ‘Rogue Unit’ Probe By KPMG


The South African Revenue Service (SARS) has spent more than R23 million on a KPMG investigation into a so-called “rogue unit”

SA’s Finance Minister Pravin Gordhan revealed this today, in a reply  to a written question in Parliament by EFF deputy president Floyd Shivambu, who had asked the minister how much the KPMG investigation had cost the tax agency, whether an open tender process was used for appointment of the audit firm and what the terms of reference of the probe were.

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To these, the minister said R23.1 million was spent on KPMG and the firm investigated the allegations made in respect of an investigative unit within the tax department. 

“The South African Revenue Service has submitted the following information. Please note that the minister is unable to verify the content…” Gordhan added in his written response.

The contentious KPMG report was among pressing issues between SARS commissioner Tom Moyane and Gordhan, after it was leaked to the Sunday Times late last year.

Explaining further, Gordhan said an already existing panel which was previously appointed through an open tender process in terms of the national treasury supply chain management, was utilized for the investigation

“The terms of reference of the mentioned company was to perform a forensic investigation based on the recommendations of the Sikhakhane report to institute a more detailed investigation and to provide evidential support to the findings made,” said Gordhan.

KPMG was commissioned by Sars commissioner Tom Moyane in December 2014 to conduct a forensic investigation into the so-called “rogue unit” at Sars and Gordhan was SARS commissioner when the investigation unit was set up, which Moyane now maintains was a “rogue unit”.

Meanwhile, the investigation into the alleged irregularities and misconduct within Sars by KPMG made a number of damning findings against senior executives and called for an investigation into Gordhan

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At the time, Gordhan shot out at KPMG over its report which was leaked to the media, and which appeared to confirm allegations regarding a rogue spy unit within the revenue service. Gordhan said he and other people named in the report weren’t able to give their side of the story.