Bain back in hot seat as SARS inquiry resumes

Management consulting firm Bain & Company will be back in the hot seat as the Nugent Commission of Inquiry resumes in Pretoria on Tuesday.

The company which helped design the South African Revenue Service’s controversial operating model which has been blamed for crippling the organisation has admitted that its work may have been used to “further a political or personal agenda”.

The operating structure which is at the centre of the inquiry probing tax and governance issues at SARS was ordered by suspended tax chief Tom Moyane.

The restructure which was implemented in 2014 led to the shutting of key tax units and resulted in a dip in revenue collection.

Bain Managing Partner Vittorio Massone will be the first to give evidence, following his startling revelation last month that Moyane had sought information on SARS prior to his appointment to the position of commissioner in 2013.

In his early testimony, Massone told the inquiry that there was not reason given by Moyane for the restructure, and blamed its failure on implementation by SARS. He also refused that the company was to blame for the damage caused by the overhaul.

Under fire from being seen as having a hand in the collapse of one of the country’s key institution, Bain early this month announced they will return the R164m they received from SARS in service fees.

But the company said it was “deeply sorry” for how its work turned out, adding: “We wish we had known then what we do now” – after initially refusing to apologise.

Solly Tshitangano, the director of compliance and monitoring at the National Treasury will also return to the give evidence.

Tshitangano’s previously detailed how the Bain contract had raised a number of red flags, including irregular tender process.

A number of SARS officials are also due to give evidence over the next three days, including Yousuf Denath, senior manager in the fraud investigations unit, Luther Lebelo, who heads employment relations and former criminal investigator Ronel van Wyk.

Van Wyk, an experienced investigator, resigned from SARS in November 2017.

The inquiry will proceed until Friday. — Fin 24

Advertisting

Ramaphosa ‘neutral’ in Mkhwebane, Parliament impeachment row

However, the president says even if he has a conflict of interest, another Cabinet member could suspend the public protector

February 11 1990: Mandela’s media conquest

Nelson Mandela’s release from prison was also South Africa’s first ‘media event’. And, despite the NP’s, and the SABC’s, attempt to control the narrative, the force of Madiba’s personality meant that he emerged as a celebrity

Strike-off case pulls in judge

Judge Mushtak Parker is implicated in an application to strike off his former partners. He is also involved in the fight between the Western Cape high court’s judge president and his deputy

One strike and you’re out – registrar tells unions

A municipal workers’ union is the first to be sanctioned for not following the new rule when deciding whether to go on strike
Advertising

Press Releases

Response to the report of the independent assessors

VUT welcomes the publishing of the report of the independent assessors to investigate concerns of poor governance, leadership, management, corruption and fraud at the university.

NWU student receives international award

Carol-Mari Schulz received the Bachelor of Health Sciences in Occupational Hygiene Top Achiever Award.

Academic programme resumes at all campuses

Lectures, practicals, seminars and tutorials will all resume today as per specific academic timetables.

Strategic social investments are a catalyst for social progress

Barloworld Mbewu enables beneficiaries to move away from dependence on grant funding

We all have a part to play to make South Africa work

Powering societal progress demands partnerships between all stakeholders

So you want to be a social entrepreneur?

Do the research first; it will save money and time later

Social entrepreneurship means business

Enterprises with a cause at their core might be exactly what our economy desperately needs

Looking inwards

Businesses are finding tangible ways to give back – but only because consumers demand it