Toby Shapshak
International consultancies had a significant hand in state capture, especially Bain & Co which “colluded” in the “dismantling” of SA Revenue Service (Sars), the Zondo commission has found in its first report.
Former president Jacob Zuma appointed his friend and ally Tom Moyane as the Sars commissioner in 2014. However, they had met US-based Bain many months before to formulate their plan, the report found.
“The Sars evidence is a clear example of how the private sector colluded with the executive, including president Zuma, to capture an institution that was highly regarded internationally and render it ineffective,” Zondo wrote.
“What occurred at Sars was inevitable the moment Moyane set foot there. He dismantled the elements of governance one by one.”
Bain’s behaviour was reprehensible, Zondo found.
“Bain knew that they did not have the necessary expertise. They must have thought South Africa did not know this or did not care whether they had the necessary expertise. I think President Zuma and Moyane neither knew nor cared.
“Moyane was involved in advancing the project of state capture when he was commissioner of Sars… Moyane simply did not act with the interests of Sars at heart. He sought to advance Zuma’s and Bain’s interests,” the report added.
Acting on the advice of Bain, Moyane proceeded to wreck Sars, which was once considered a world-class tax authority.
“Sars was systemically and deliberately weakened, chiefly through the restructuring of its institutional capacity, strategic appointments and dismissals of key individuals, and a pervasive culture of fear and bullying. It is a clear example of state capture,” Zondo wrote.
Meanwhile, private-sector auditors were also given the Zondo treatment.
“PwC and Nkonki gave clean audits to SAA for five consecutive years between 2012 and 2016. During this period, the board was in a state of precipitous governance decline. It was also engaging in acts of corruption and fraud,” he wrote.
“None of this was, however, detected by its auditors.”
