Treasury official suggests Sars decision to choose Bain was predetermined
Solly Tshitangano told the Sars inquiry that it was ‘very strange’ that a second firm’s bid was R2.8m and Bain’s, as the winning bidder, was R2.7m only after a 50% discount
The process to appoint Bain by the SA Revenue Service (Sars) was irregular and riddled with "red flags", in a manner that suggests that the consultancy’s appointment was predetermined, a Treasury procurement official said on Friday. Bain conducted the far-reaching restructuring of the Sars operating model at a cost of R164m, which is said to have destroyed the revenue collector’s capacity and neutralised its efficiency. The Treasury’s Solly Tshitangano told the commission of inquiry into governance at Sars that the 50% discount that Bain gave the tax agency — which ensured them the tender for a diagnostic exercise on the restructuring — was "unusual". He said it was "very strange" that the second company’s price had come in at R2.8m and Bain’s as the winning bidder came in at R2.7m only after the 50% discount. He disclosed that before the tender process had even begun, Sars wrote to Telkom, which had had an existing contract with Bain to request that the tax agency "participate" in ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.