Statement by SA’s National Treasury and Presidency

Mark Kingon has been appointed as Acting Commissioner for the South African Revenue Service (SARS) following the suspension of Tom Moyane, the Commissioner of SARS by the President.

President Cyril Ramaphosa on Monday, 19 March 2018 informed Moyane of his suspension with immediate effect pending the institution of disciplinary proceedings.

President Ramaphosa said it was in the public interest to restore the credibility of SARS without delay.

In a letter to Moyane, President Ramaphosa said :Developments at the SARS under your leadership have resulted in a deterioration in public confidence in the institution and in public finances being compromised. For the sake of the country and the economy, this situation cannot be allowed to continue, or to worsen.”

Concern was raised in particular about the manner in which Moyane handled the matter of Makwakwa, his treatment of the report given to him by the Financial Intelligence Centre, and his failure to immediately report this to the Minister of Finance.

Another concern that was raised was the management of VAT refunds, which had brought the SARS into serious disrepute and potentially jeopardised the integrity of the SARS as collector of revenue and adversely affected tax morality among tax payers.

The decision to suspend Moyane follows a meeting in which President Ramaphosa informed Moyane that he had lost confidence in his ability to lead SARS and offered him an opportunity to resign with immediate effect, which Moyane declined.

President Ramaphosa indicated that as SARS Commissioner, Moyane holds a high position of trust in the management of the country’s public finances. It was therefore necessary to act urgently and immediately to protect the institution and place it on a path to stability and recovery.

Kingon is currently the Acting Chief Officer: Business and Individual Taxes, within SARS. He has been with SARS since its establishment and worked his way through the ranks to become the Group Executive: Relationship Management within Business and Individual Taxes.