SARS Chief Executive Embroiled in Financial Impropriety Allegations

A high-ranking official at the South African Revenue Service (SARS), Jonas Makwakwa, has come under scrutiny after “suspicious and unusual” cash payments into his bank account were flagged, prompting calls for investigations into potential proceeds of crime and acts of money laundering. A preliminary report by a banking regulator was compiled and submitted to SARS commissioner Tom Moyane for further action.

The detailed report shows that between 2010 and January this year, Makwakwa received unexplained cash deposits and bank transfers amounting to R1.2-million. Additionally, Makwakwa's girlfriend and fellow SARS employee, Kelly-Ann Elskie, reportedly deposited R450,200 in cash into her Absa account over three days just prior to Christmas 2015. The transactions in question were surveilled via bank camera footage, serving as evidence for the investigation.

Despite the report being handed over to Moyane in May, there has been no official comment from SARS, and both Makwakwa and Elskie retained their positions. Makwakwa, particularly, has risen to a place of influence within the organization, especially after Moyane's appointing in late 2014. Both individuals have refrained from commenting on the matter, citing its sub judice status.

The banking regulator's report also unearthed discrepancies, such as a suspect foreign exchange credit and several cash deposits, that draw attention to Makwakwa's financial activities. It notably mentions a complete trail of payments that might involve a car and a property in Elskie's name. The report also illuminates a transaction chain spanning multiple companies and bank accounts related to government contracts and raises questions about a potential network of off-the-book financial dealings.

Associations with Patrick Monyeki, identified as a close friend of Moyane, have introduced another layer of intrigue, with Monyeki being involved in controversial IT contracts at the government level. This has led to further scrutiny into potential conflicts of interest and the inner workings of SARS under the direction of Moyane and Makwakwa.

Scrutiny over the top SARS officials follows previous concerns arising from their influential roles in tax settlement negotiations, culminating in a R4-million defamation lawsuit after investigative reports by amaBhungane.

This exposure of potential financial transgressions comes at a time when public trust in government institutions is already wavering, placing added pressure on SARS to enforce compliance and maintain integrity within its own ranks. As the banking regulator’s report concludes on the need for exhaustive investigative proceedings, the murky waters surrounding these financial dealings at SARS await to be cleared.