Outgoing SARS chief says transactional approach to corruption isn't working

Outgoing South African Revenue Service (SARS) Edward Kieswetter said that the government has failed to get a grip on the illicit economy because its law enforcement agencies have not been working as a collective.

Speaking on the sidelines of his graduation at the Cape Peninsula University of Technology on Friday where he received an honorary doctorate in Business and Management Sciences, Kieswetter noted that this type of corruption is deeply systemic. He argued that the current transactional approach to tackling the issue is simply not working.

While Kieswetter will soon be hanging up his robe as the country’s chief tax collector, he maintains that the work of strengthening South African institutions is far from over. A primary focus of this work must remain the clampdown on the illicit economy.

"Why have we failed in addressing it? We failed because we have largely followed a transactional approach. There’s no collaboration."

READ: The human legacy: Edward Kieswetter prepares to exit a transformed SARS

The scale of the challenge is significant. New research from the University of Cape Town revealed that as much as 60% of the cigarettes sold during the height of the Covid-19 pandemic in 2021 were illegal.

Kieswetter warned that bolstering the resources of law enforcement agencies alone will not be enough to break the cycle of organised syndicates if the fundamental method of work remains unchanged.

"All of us have to work in a collaborative way to address the same phenomena," he said.

Despite the grim outlook, Kieswetter noted a potential turning point. Following discussions with the President and the Ministers of Finance, Police, and Defence, he believes there is now a genuine commitment to changing the national approach to tackling the problem.