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Instability at Sars will affect Treasury, Nugent commission hears

Treasury Director-General Dondo Mogajane suggested that if Sars sneezes, the Treasury catches a cold.

FILE: National Treasury's Director-General Dondo Mogajane. Picture: YouTube screengrab

PRETORIA – Treasury has stressed how important stability and efficiency is at the South African Revenue Service (Sars) to ensure its capable of fulfilling its role in setting budgets and funding government projects.

This was among the submissions at the Nugent Commission of Inquiry in Pretoria on Wednesday.

The commission is probing a four-year period from 2014 under the leadership of Tom Moyane.

Treasury Director-General Dondo Mogajane suggested that if Sars sneezes, the Treasury catches a cold.

“If there’s any impact on what the expectations are from a cashflow management point of view, then we will have a problem in funding government expenditure. So, it’s therefore in our interest that every small little thing that happens in Sars, from the tax administration point of view, that that’s not impacted.”

He says Treasury’s relationship with Sars was strained in recent years.

“In recent years, preparations for 2016, 2017 and 2018 budgets involved less or no participation than normal from the commissioner in the way that we’re accustomed to.”

Consultancy firm Bain is scheduled to testify today.