Bain contract with Revenue Service was ‘irregular’, advocate tells Sars inquiry
The contract awarded to Bain for the far-reaching restructuring at the SA Revenue Service (Sars) was irregular, the commission of inquiry into governance and administration at the tax agency heard on Wednesday. International consultancy Bain was in the hot seat during the second leg of hearings taking place in Pretoria. The consultancy received R164m for the far-reaching restructuring, which the commission has heard neutralised Sars’s capacity under suspended commissioner Tom Moyane. Evidence leader advocate Carol Steinberg said that there were many irregularities in awarding the contract, which Sars and the Treasury would have to answer for. She explained — with evidence from the minutes of Sars executive committee meetings — that a request for proposals was issued merely for a diagnostic. The cost of this was less than R3m. Bain was appointed because it gave Sars a 50% "discount" for the diagnostic, which made them the cheapest bidder. The problem emerged thereafter: no new tender...
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