SARS vows to take legal action against KPMG over withdrawal of 'rogue unit' report

18 September 2017 - 12:27
By Kyle Cowan

SARS Commissioner Tom Moyane says the revenue service will be taking legal action against auditing firm KPMG after it withdrew its report into the so-called “rogue unit”.

Moyane said he was only notified of KPMG's decision on Friday morning via a lawyer’s letter‚ barely two hours before the auditors issued a public statement.

“SARS has been completely taken aback by KPMG’s abhorrent and unethical behaviour‚” Moyane told journalists at a media briefing in Pretoria on Monday.

“This abhorrent‚ unethical and unprofessional conduct by KPMG has left SARS with no other option‚” he said. Moyane added that he will be asking the Minister of Finance to blacklist KPMG‚ which will effectively mean the auditing firm will not be able to do any work for government departments.

Furthermore SARS will be conducting a review of all work KPMG has done for it in the past 10 years‚ to see if there was any “value for money”.

KPMG's "rogue unit" report‚ which cost SARS R23-million‚ delved into the legality of an elite crime investigative unit within SARS in 2007.

KPMG had concluded there were irregularities in the establishment of the unit. It has now withdrawn its recommendations.