Gupta VAT refunds: SARS head of legal Refiloe Mokoena suspended

2018-10-18 17:37
SARS. (Duncan Alfreds, News24)

SARS. (Duncan Alfreds, News24)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

The South African Revenue Service (SARS) has placed its head of legal, Refiloe Mokoena, on suspension.

In September, News24 reported that Mokoena had been served with a notice of intention to suspend and given an opportunity to provide reasons why she should not be axed.

The suspension is in relation to Mokoena's involvement in the unlawful payment of R42m in VAT refunds claimed by Gupta companies that were paid to a series of third parties, including a pay agent and a shelf company.

An investigation by News24 and Daily Maverick revealed how Mokoena had provided the go ahead for the payments to be made despite legal advice from other SARS executives to the contrary.The suspension was confirmed by two SARS insiders close to Mokoena.

It also emerged in an interim report by the SARS Commission of Inquiry headed by retired Judge Robert Nugent, that Mokoena had been suspended.

News24 understands that Mokoena will be fighting her suspension.

Mokoena previously served on the board of state-owned arms manufacturer Denel while it was attempting to establish a joint venture with Gupta-owned VR Laser.

She was hired during now suspended commissioner Tom Moyane's tenure.

SARS admitted in July that the payment of the VAT refunds was illegal as the VAT Act does not allow payments to be made to third parties, specifically to curb fraud.

"VAT refund payments into an attorneys trust account would be a direct contravention of the provisions of section 44(3)(d) of the VAT Act," a SARS spokesperson told News24 and Daily Maverick.

The spokesperson continued, saying that "by all accounts, the SARS processes insofar refunds are concerned, have been followed; however, all these are being reviewed to ensure the robustness of the SARS systems and processes.

"The possibility that governance processes, which include standard operating procedures, have failed and the reasons for the failure is part of our overall review referenced earlier," the response continued.

KEEP UPDATED on the latest news by subscribing to our FREE newsletter.

- FOLLOW News24 on Twitter

Read more on:    sars  |  gupta family  |  corruption

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

Inside News24

 
/News
Traffic Alerts
Traffic

Jobs in Cape Town [change area]

Jobs in Western Cape region

Cluster Financial Manager

Cape Town
Network Finance
R950 000.00 - R1 000 000.00 Per Year

Reporting Accountant

Cape Town
Network Finance Professional / Prudential
R310 000.00 - R360 000.00 Per Year

SQL Reporter

Cape Town
Communicate Cape Town IT
R10 000.00 - R12 000.00 Per Month

Property [change area]

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.