Guess who Zuma's rooting for in SARS battle with Gordhan

Finance Minister Pravin Gordhan has revealed the extent of the breakdown of trust between the Treasury and SARS in his reply to a question in parliament.

This from Linda Ensor's story for our sister newspaper, Business Day.

"Replying in writing to a question by DA finance spokesman David Maynier about whether SARS has any specialised investigating unit similar to the now disbanded high-risk investigation unit, Gordhan provided the information supplied to him by SARS, cautioning that the ministry could not verify its accuracy 'because of lack of accountability and co-operation from the SARS top management'.

"Such a qualification is unprecedented in ministerial replies to parliamentary questions.

"It indicates that the relationship between the two men has reached rock bottom."

The "two men" are Gordhan and SARS commissioner Tom Moyane.

I hate to say it, but the responsibility for this mess can be laid at the door of President Jacob Zuma.

When Gordhan took office he immediately took issue with Moyane over the latter's plan to restructure SARS. He was rebuffed, raising questions about exactly to whom SARS accounted if not to the finance minister.

Zuma stepped in, saying he would sort the matter out.

Since then, Zuma has done nothing. He has either been inept and failed to deal with the problem, or he has chosen not to deal with it because he does not want Moyane reporting to Gordhan.

The latter theory has appeared to hold more sway since Moyane's failed effort to have Gordhan prosecuted in connection with the "rogue unit" at SARS and the allegations surrounding the early retirement of SARS deputy commissioner Ivan Pillay.

The outcome is very bad for South Africa. The tax administration is critical to the country's finances and needs to work hand-in-glove with the Treasury or there are bound to be conflicts which undermine the agency and damage the legitimacy of tax collection.