Mkhwebane wants Hawks to investigate Gordhan, Kieswetter, Moyane over 2006 IT deal

Public Protector Busisiwe Mkhwebane is gunning for Sars boss Edward Kieswetter and Public Enterprises Minister Pravin Gordhan, and other former Sars heavyweights, in a report released on Friday, related to a Sars IT contract from 2006.

Mkhwebane released her report into “allegations of violation of the executive ethics code promulgated in terms of section 2(1) executive members’ ethics act, 1998 on Friday afternoon. The release flew somewhat under the radar, as it coincided with the release of part four of the Commission of Enquiry into Allegations of State Capture’s report.

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Gordhan and his successors at Sars all in trouble

Her investigation, though sixteen years late, centred around allegations of “maladministration, improper conduct and procurement irregularities” in connection with the awarding of a IT contract to software company Budge, Barone & Dominick (BBD).

The complaint was brought by Zuma acolyte, Mzwanele Manyi in 2016.

Mkhwebane found in her report that “the conduct of Mr Gordhan, as the then commissioner of SARS and accounting officer, in approving the appointment of BBD, constitutes improper conduct as envisaged in the Constitution and maladministration as envisaged in the Public Protector Act.”

She found that Gordhan had recommended the appointment of BBD to replace former service providers Oracle and IBM, with then finance minister Trevor Manuel approving the contract of R100 million without it going out on tender.

Sars had deviated from regular tender procedures, but Mkhwebane said she “could not find compelling reasons for them to do so”.

Subsequent extensions by Gordhan’s successors allegedly caused the total cost of the contract to swell to R1.4 billion, which is why the Public Protector also recommends a probe into Oupa Magashula, Tom Moyane and Kieswetter, for their “improper conduct and maladministration” in approving the extensions.

Hawks and AG must investigate

Mkhwebane wrote that the national head of the Hawks “consider investigating possible criminal conduct by the relevant accounting officers of SARS”, in terms of the Public Finance Management Act (PFMA).

She goes further by suggesting probes and remedial action also be taken by the Finance Minister and the Auditor-General.

This includes a review of the contract and a halt of any further extensions, and the launch of a tender process to find a new service provider.

Why only now?

The latest report is not the first time Gordhan and Mkhwebane butt heads.

She has made findings against him on two separate occasions, involving the supposed Sars rogue unit, and his alleged irregular payment of an early pension to his former deputy commissioner at Sars, Ivan Pillay.

Both these reports were challenged, and joined a litany of court reviews going against Mkhwebane.

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Despite the Public Protector Act indicating that Mkhwebane can only investigate complaints that have been reported within two years of a transgression occurring, the Public Protector said in this case, there were special circumstances which allowed her to deviate from this rule.

“In this instance, the special circumstances that the Public Protector took into account was the fact that the conduct and/or omission, as alleged by the Complainant, was the breach of the Executive Ethics Code by a current Cabinet Member and that it related to the appointment of a member of the judiciary.

“Therefore, it was regarded as being in the interest of justice and that of the public at large that the complaint be investigated.”

Read the full report here: