Cyril Ramaphosa must discipline Gordhan, PP Mkhwebane finds

Public Protector Busisiwe Mkhwebane has released a report finding that Minister of Public Enterprises Pravin Gordhan irregularly approved the early retirement of Ivan Pillay from the South African Revenue Service (Sars) while finance minister.

The public protector has directed President Cyril Ramaphosa to “take appropriate disciplinary action” against Gordhan, finding that his approval of Pillay’s retirement amounted to “improper conduct” and was a violation of the constitution.

The commissioner of Sars at the time, Oupa Magashule, has been directed to “set in motion steps to recover the money” paid by Sars on behalf of Pillay.

Sars is also expected to introduce “regulations, policies, and practices which are clear and unambiguous relating to early retirement and staff retention”.

The allegation that Gordhan irregularly approved early retirement for Pillay is “substantiated”, according to the report.

Gordhan also acted beyond his legal authority by approving Pillay’s retention, the report finds.

Magashule, meanwhile, made the recommendation to Gordhan for the approval of Pillay’s early retirement without downscaling of his retirement benefits, which led to the payment of the “additional liability by Sars”, which the report finds amounts to “irregular expenditure”.

Mkhwebane’s findings on the Pillay matter resulted in her release of a report on one of three separate issues involving Gordhan.

The other two involve an issue relating to tenders while Gordhan was Sars commissioner and, controversially, allegations surrounding the establishment of a “rogue unit” while Gordhan was commissioner of Sars that are believed by some to have been debunked.

In 2015, the press ombudsman ruled that the Sunday Times must retract all stories on the “rogue unit saga” and to apologise to Pravin Gordhan as well as others implicated after Gordhan, former Sars deputy commissioner Ivan Pillay, and former Sars executive Johann van Loggerenberg lodged a complaint.

Mkhwebane and Gordhan have been involved in an ongoing battle over her investigations.

Earlier in May, she wrote a letter to President Cyril Ramaphosa asking him to intervene, Business Day reported at the time.

In the letter, Gordhan is once again accused of trying to “interfere” with her investigation, an accusation Mkhwebane has made previously.

According to Mkhwebane, Gordhan’s “conduct throughout these investigations” has not been “protective and helpful towards the public protector to ensure its independence and impartiality”.

She has requested that Ramaphosa “intervene” in the matter, declaring Gordhan’s behaviour “at odds with … the constitution”.

In April, Mkhwebane subpoenaed Gordhan, his lawyers confirmed at the time.

Mkhwebane gave the minister until April 23 to hand over all evidence relating to his alleged establishment of a “rogue unit” at Sars during his stint as its commissioner. She later extended this deadline to May 3.

Gordhan’s spokesperson Adrian Lackay called the subpoena evidence of “persistent harassment of Minister Gordhan and flagrant abuse of office”.