The South African Revenue Service (SARS) has launched a crackdown on corruption within its ranks
Image: Timothy Bernard / Independent Newspapers
The South African Revenue Service (SARS) has launched a crackdown on corruption within its ranks, targeting six current and former employees allegedly involved in a multi-million-rand customs fraud scheme.
In a statement released to the media on Tuesday, the revenue service said that the scheme involved collusion between customs-inspection teams, clearing agents, and importers.
"SARS has been investigating allegations that customs-inspection teams colluded with clearing agents and importers to manipulate physical inspections in exchange for cash bribes. Financial analysis identified under-declared taxable income exceeding R45 million, resulting in income-tax prejudice of about R18 million," the revenue service said.
The revenue service also revealed that it has launched search and seizure operations and preservation orders against the six current and former employees.
"To disrupt this scheme, today SARS has executed search and seizure and preservation orders against the SARS officials and related parties to secure evidence and assets. The latest actions taken by SARS relate to six current and former SARS employees and related taxpayers and traders.
"The persons in question are alleged to have failed to comply with their statutory obligations as taxpayers, by participating in a corrupt scheme that has directly prejudiced all honest taxpayers and traders and the fiscus."
SARS Commissioner Edward Kieswetter said the crackdown is part of a broader effort to protect South Africa’s revenue system.
“Those who choose to abuse this mandate, whether from within SARS or from outside, have committed a crime and must face the consequences,” Kieswetter said.
Kieswetter also praised the SARS teams involved in the investigation, saying their work demonstrates the agency’s commitment to integrity.
"SARS exists to serve South Africans. Far too many of our employees work diligently, with utmost dedication and integrity, in pursuit of that higher purpose, for their efforts to be undermined by a few who choose to collude with criminals.”
The revenue service also confirmed that it will work with the South African Police Service (SAPS) and the National Prosecuting Authority (NPA) to pursue criminal investigations and prosecutions arising from the case.
“We cannot tolerate any acts of corruption. This is a red line that no one must cross, and no position inside or outside SARS places anyone above the law.
“Where evidence points to criminality, SARS will detect and pursue it, disrupt the scheme, and recover what is owed to the fiscus. Integrity is not optional at SARS; it is foundational to our mandate,” Kieswetter added.
mthobisi.nozulela@iol.co.za
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