The South African Revenue Service (Sars) has issued a “heartfelt” apology to former employees affected by the organisation’s State capture years, and has reached a settlement with them.

The settlement give effect to one of the recommendations of the Nugent Commission of Inquiry into Tax Administration and Governance by Sars which found that there had been a massive failure of integrity and governance at Sars under the tenure of former Sars Commissioner Tom Moyane. 

On Friday Sars announced that it has settled with former employees who were adversely affected between 2014 and 2018.

This also comes after the Constitutional Court finally ended, after years of litigation at the cost of taxpayers, suspended Public Protector Busisiwe Mkhwebane's attempts to appeal the invalidation of her so-called Sars ‘rogue unit’ report.

After an extensive enquiry into the matters that transpired at Sars, including allegations that the ‘rogue unit’ was unlawfully set up in 2008 to counter the illicit economy, the Nugent Commission found in 2018 that there was no basis for the allegations.

In its final report the Commission also recommended that Sars consider reparations to current and former employees who were negatively affected by actions taken by Sars owing to the now retracted Sikhakhane and KPMG reports. 

Some of those whose reputations were affected affected by ‘Rogue Unit’ narrative include Ivan Pillay and Johann van Loggerenberg, as well as Peter Richer, Andries Janse van Rensburg, Adrian Lackay, Pieter de Bod, Gilbert Gunn, Nkele Pitsi, Siobhan Wilson, Telita Snyckers, Charl Fourie, Gene Ravele and Marika Muller.

Sars Commissioner Edward Kieswetter said the organisation should not have used the Sikhakhane and KPMG reports as a basis for any of the actions taken against the affected people and other Sars officials.

He said Sars recognised that the reports were deeply flawed.

In line with the recommendations of the Advisory Committee, Sars has paid “fair and reasonable pecuniary compensation” for the infringement of the participants’ personality rights as well as compensation for any loss of employment during this time.  

“Unfortunately, because Sars itself became the victim of state capture in this period, Sars acknowledges that it failed to defend and protect its employees when the false allegations and imputations of wrongdoing resurfaced in October 2014 and in the subsequent years thereafter,” Kieswetter said.

Sars has also tendered a private apology to each affected person and their families for the ordeal and any harm caused to them. 

“Sars deeply regrets the hurt, pain and suffering visited on them and their families as a result of certain actions implemented by Sars in this period,” Kieswetter added.