The Xolani Gwala Show

Treasury says former senior tax official Jonas Makwakwa will still have to answer to allegations of fraud and corruption despite his resignation.

South African Revenue Service (Sars) commissioner Tom Moyane announced the immediate resignation of Makwakwa on Wednesday.

READ: Jonas Makwakwa cites personal reasons, not evidence of corruption, for resigning

Makwakwa was controversially cleared of wrongdoing in an internal hearing last year.

The Hawks are continuing with investigations into the allegations of fraud and money laundering related to R600,000 paid into his bank account as identified by the Financial Intelligence Centre.

Treasury's Acting Director-General Ismail Momoniat says Makwakwa's resignation is a positive move for tax morality.

Momoniat says it is very important that investigations continue, even with Makwkwa gone.

Of course the question will be asked why did it take almost two years, it undermines the integrity and reputation of Sars, so the sooner we start turning that around. The better.

— Ismail Momoniat, Acting Director-General at Treasury

You hope that when people get reports of suspicious transactions it is very important to investigate them quickly and to be seen to be doing so as well, it has taken almost two years for this process and we still don't know what the outcome is. I still think that Mr Makwkwa has to answer and indicate what were the sources of those funds.

— Ismail Momoniat, Acting Director-General at Treasury

Meanwhile Chairperson of Parliament's Standing Committee on Finance, Yunus Carrim says Makwakwa can't escape the criminal justice system simply by resigning.

Our view is very strongly in the case of Sars, you have to be seen to be above reproach.

— Yunus Carrim, Chairperson of Parliament's Standing Committee on Finance

This matter is not so much about whether or not Mr Makwakwa is guilty or not, that is not something we can decide on. We are not a court. But the issue for us now is how did Sars behave and what can be done about it.

— Yunus Carrim, Chairperson of Parliament's Standing Committee on Finance

The committee has requested that the scope of the commission of inquiry into Sars be broadened.

Click on the link below to hear more from both Momoniat and Carrim....

This article first appeared on 702 : Sars has been in the news for all the wrong reasons - Treasury