Treasury probes reports that Moyane has his own 'rogue unit'

The Treasury is investigating the veracity of media reports that South African Revenue Service (SARS) commissioner Tom Moyane has established a special investigation unit similar to the controversial "rogue unit" that has led to the hounding of former SARS commissioner and current Finance Minister Pravin Gordhan.

Sunday Times reported this week that Moyane had authorised the setting up of a secret unit to investigate employees suspected of being involved in corrupt activities in the tobacco industry including victimisation of competitors of British American Tobacco.

The report said that according to an internal SARS memo, the unit would conduct undercover operations, set up agent traps and intercept the communications of suspected SARS employees and would work with the Hawks, the National Prosecuting Authority and police crime intelligence.

Moyane first announced his plan to set up a special investigation unit in a briefing to Parliament’s standing committee on finance on the tax authority’s strategic plan, although he did not provide details of its nature or scope of work.

What made the planned unit different from the so-called rogue unit, Moyane said at the time, was that his unit would be established in terms of the law.

The legality of the investigative unit established under Gordhan to uncover tax evasion and the illicit trade in cigarettes has been questioned not only in terms of whether its foundation was in conformity with the law, but also in terms of the methods it used.

The Hawks are apparently at an advanced stage of their investigation into the "rogue unit" and it is feared Gordhan will once again be charged.

He has rejected all allegations of wrongdoing. Defenders of the original unit have pointed out that tax authorities worldwide have similar special investigation units.

The establishment of a new unit has been presented by SARS as a legitimate exercise. Spokeswoman for the Treasury Yolisa Tyantsi said on Monday "at this stage this information has been reported by the media. National Treasury is in the process of looking into the veracity of the reports."

It is not clear whether Moyane needs to obtain ministerial approval for this or whether it is an operational matter which falls under his sole discretion. However, the Treasury has been kept in the dark about other goings-on at the tax authority which it has only learnt about through media reports.