/ 29 June 2018

Makwakwa takes SARS to CCMA for constructive dismissal

In March
In March

While former South African Revenue Service (SARS) chief operations officer Jonas Makwakwa’s conduct at the tax body formed the focus of hearings on Thursday, it has come to light that he is taking the South African Revenue Services (SARS) to the Commission for Conciliation, Mediation and Arbitration (CCMA) for constructive dismissal.

“Yes, it is true I took SARS to the Commission for Conciliation, Mediation and Arbitration,” Makwakwa told Fin24 on Friday.

“The same issue that was being investigated, I was being charged [with] again. It can’t be right.

“I know for a fact that SARS did their own investigations after I resigned and I was not found guilty,” Makwakwa said.

The matter was set down for hearing on June 20. However, Makwakwa said it was postponed and is only likely to start in August.

In a letter seen by News24 addressed to the revenue service, Makwakwa’s legal representatives said they planned to call witnesses in the matter which includes Minister of Public enterprises Pravin Gordhan, former deputy minister of Finance Mcebisi Jonas and suspended SARS boss Tom Moyane.

“We understand that SARS has initiated and concluded an investigation into the allegations of an alleged connection between my client and [New Integrated Credit Solutions].

“In this regard, we request SARS to issue a media statement setting out the conclusions of the investigations,” reads parts of the letter.

In March, Moyane announced Makwakwa’s resignation at an urgent briefing.

This followed Makwakwa coming under the spotlight following a report by Daily Maverick that NICS, which has a deal with SARS to assist in bolstering the tax body’s debt collections, paid R600 000 into his bank account.

Moyane had earlier told Parliament’s standing committee on finance that while businessman Patrick Monyeki was his friend, he was not aware that Monyeki was doing any direct business with SARS through the revenue service’s debt solutions provider NICS.

On Thursday, the SARS inquiry heard that Makwakwa actively tried to interfere with the tax matters of high-profile or VIP taxpayers — to the indignation of other tax officials, who claimed he had “no business” instructing individuals how to deal with these matters.

Fin24 earlier reported that Makwakwa allegedly contacted then-acting chief officer for strategy, enabling and communications Makungu Mthebule on a number of occasions to instruct her to deal with high profile individuals’ tax matters in a certain way — and also made numerous requests to staff in the VIP tax unit for information relating to certain taxpayers.

Mthebule instructed her staff to refuse — and herself refused to comply with Makwakwa’s “instructions”. — Fin24