Public Protector finds Gordhan guilty over SARS retirement payout

JOHANNESBURG - Public Protector Busisiwe Mkhwebane has found Minister Pravin Gordhan guilty of improper conduct regarding a payout for former South African Revenue Service (Sars) deputy commissioner Ivan Pillay’s early retirement.

Mkhwebane was addressing the media on the findings of six concluded investigations into various matters on Friday afternoon in Pretoria.

“One (of the findings) relates to an investigation into allegations of maladministration and impropriety in the approval of Mr Ivan Pillay's early retirement with full benefits and subsequent retention by Sars,” she said.

At the time, Gordhan was serving as the minister of finance and made the decision based on the recommendation of then Sars commissioner Oupa Magashula.

The Public Protector said: “We investigated the application of early retirement and payment of over R1 million which was levied on Mr Pillay’s benefits by the government pension fund that would allow him to enjoy full pension benefits as though he would have retired at a statutory age.”

She said the complaint about Pillay’s payout and early retirement was made anonymously in November 2016.

She said analysis of 11 documents, interviews and considerations of key case law formed part of her investigation.

“Having considered the evidence uncovered during the investigation, regarding whether Gordhan irregularly approved an early retirement of Pillay with full pension benefits and his subsequent retention at Sars, that allegation is substantiated.”

Mkhwebane found that by law, Gordhan was not authorised to sign off on Pillay’s request for early retirement and full payout.

“Pillay was not entitled to early retirement with full benefits under section 16.2A of the PSA Act.”

In her recommendations, she urged President Cyril Ramaphosa to take appropriate disciplinary action against Gordhan for violating the Constitution in approving Pillay’s payout and early retirement.

She also urged “the commissioner of Sars to set in motion steps to recover the money paid… and to ensure that Sars introduces part of their recruitment processes, regulations, practices and which are clear and unambiguous relating to early retirement and staff retention”.

Pillay and Gordhan were charged with fraud and corruption in 2016 related to this pension payout, but the charges were later withdrawn when evidence revealed there was no wrongdoing.

Last year, Mkhwebane said the National Prosecuting Authority's decision to withdraw the criminal case against Gordhan and Pillay was irrelevant.


This article first appeared on EWN : Public Protector finds Gordhan guilty over SARS retirement payout


Recommended

by NEWSROOM AI
Read More
Mixed reaction on how Masechaba Ndlovu exposed ‘abusive’ Mampintsha

Mixed reaction on how Masechaba Ndlovu exposed ‘abusive’ Mampintsha

Radio host Masechaba Ndlovu revealed that Bongekile 'Babes Wodumo' Simelane once got a nose-bleed and broken leg in the hands of Mandla 'Mampintsha' Maphumulo.

[WATCH LIVE] Royal wedding: Prince Harry weds Meghan Markle

[WATCH LIVE] Royal wedding: Prince Harry weds Meghan Markle

The pair is now known as the Duke and Duchess of Sussex after saying their vows in the St George's Chapel as Queen Elizabeth has bestowed new titles on them.

Mbete: Sona 2018 postponed, no new date set

Mbete: Sona 2018 postponed, no new date set

Speaker Baleka Mbete Mbete says it had become clear that it was unlikely that a joint sitting of the two houses would be uneventful if it was held this Thursday as planned.

South Africans Doing Great Things: Edward Ndopu

South Africans Doing Great Things: Edward Ndopu

Edward Ndopu has recently been named one of the World’s Top 30 Thinkers Under 30 for 2016.

South Africans Doing Great Things: Boity Thulo

South Africans Doing Great Things: Boity Thulo

Boity Thulo speaks to NightTalk's Gugs Mhlungu and Wasanga Mehana on the support from her family and her career highlights so far.

Popular articles
How to live off a dread disease benefit

How to live off a dread disease benefit

Personal finance advisor Warren Ingram discusses "dread disease benefits", typically paid out as a lump sum.

'It's about time too!' DJ Fresh on his new 947 gig  #FreshOn947

'It's about time too!' DJ Fresh on his new 947 gig #FreshOn947

The news that DJ Fresh would be joining 947 was dominating on social media on Monday with the hashtag #Freshon97

Vaginal ring effective in HIV prevention, study shows

Vaginal ring effective in HIV prevention, study shows

The ring offers an alternative to taking an oral pill every day and needs replacing just once a month.

Lion King fan pleads with parents not to take their kids to the cinema at night

Lion King fan pleads with parents not to take their kids to the cinema at night

Khabazela shares tweets and Facebook posts that have gone viral.

Brand new business hub to help startups get off the ground  - CPT

Brand new business hub to help startups get off the ground - CPT

It's being dubbed a 'one-stop-shop' for entrepreneurs and startups looking for opportunities in the Mother City.

'A lot of people may have wanted him dead.'  - Who killed Mark Batchelor?

'A lot of people may have wanted him dead.' - Who killed Mark Batchelor?

A Sunday newspaper report has suggested the soccer ace's death may have been linked to a missing stash of cocaine.

'Batchelor was once close to Mikey Schultz and self-confessed Kebble killers'

'Batchelor was once close to Mikey Schultz and self-confessed Kebble killers'

Journalist and author Mandy Wiener describes former footballer Marc Batchelor's links to alleged underworld figures.

Paying off your credit card every month to avoid interest? The banks are sneaky…

Paying off your credit card every month to avoid interest? The banks are sneaky…

Consumer journalist Wendy Knowler warns prudent credit card holders to keep tabs on their banks. In this case, it’s FNB.