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Sars Commissioner Edward Kieswetter gave details of the dubious deals during a meeting with the South African National Publishers Forum (Sanef).
JOHANNESBURG – South African Revenue Service (Sars) Commissioner Edward Kieswetter said on Thursday that the revenue service audit so far had revealed that tenders for personal protective equipment (PPE) worth more than 1 billion rands were awarded to politically exposed persons.
Kieswetter gave details of the dubious deals during a meeting with the South African National Publishers Forum (Sanef).
He said Sars’ audit of PPE tenders found serious abuse of the system with pubs, car wash businesses, bakeries and event companies awarded contracts.
Kieswetter said that some 22 companies linked to politically exposed persons managed to rate the lucrative tenders.
In one case, a tender for R 60 million was verbally awarded.
The ongoing audit also revealed that many of these companies were not compliant with taxes. Sars referred at least three companies that were awarded contracts worth R 165 million for criminal investigations.
Kieswetter said investigations continued but that Sars faced an uphill battle.
“We currently have limited resources and we need to increase our audit capacity, our criminal investigation capacity, our forensic audit capacity, our customs area, financial structuring, so these are areas in which we desperately need to have more money to be able to have a better answer, ”Kieswetter said.
The Sars commissioner was also concerned that corruption in the government could damage the organization’s tax collection campaign.
Taxpayers were losing faith in the state as corruption continued unabated, even during a public health crisis.
The projected tax revenue collection was revised down by R304 billion as a result of the national shutdown.
Kieswetter made a case against a tax revolt, warning that it would have a devastating impact on the poor.
“We are angry and outraged by the corruption and waste in government, but at the same time, if you were to withhold your money, you would harm and hurt the most vulnerable in society. We at Sars defend the poorest, ”he said.
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