SARS Commissioner lifts lid on State institutions' vulnerability to criminal networks

Outgoing South African Revenue Service (SARS) Commissioner Edward Kieswetter said the entity, including other government institutions are vulnerable to criminal networks driving the illicit economy.

He further warned that this poses a serious threat to the country’s economy.

Kieswetter said highly organised, well-resourced syndicates can infiltrate State institutions, buy access to power, and even penetrate law enforcement structures.

His warning comes as companies such as British American Tobacco (BAT) have scaled back manufacturing in South Africa due to the rapid growth of illicit cigarettes.

Speaking at the SARS preliminary 2025 financial results release on Wednesday, Kieswetter said without stronger borders, the illicit economy will continue to expand, costing jobs and the fiscus.

Recently, customs officials were accused of taking bribes to manipulate inspections, in an alleged scheme involving more than R45 million in under-declared taxable income and an estimated R18 million in lost revenue.

“We see when we listen to the commissions how easily they have integrated into the South African Police Force. But it's not just the South African Police Force that is vulnerable.

“SARS is vulnerable, the hawks are vulnerable because people are basically the weak point in every system, and these criminals are resolute, often better organised and better resourced. They buy access to the seats of power and control.”

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