MPs issue deadline to settle border agency discord

Source: Business Day, 22/08/2016

THE Department of Home Affairs, the Police Ministry and the Treasury
have less than four weeks to sort out their differences over the
Border Management Authority Bill, which has huge implications for the
country`s tax-collection regime.


The bill, which has been seven years in the making, has raised
concerns because it proposes setting up a parallel function to the
South African Revenue Service (SARS) commissioner in a border
management agency, without outlining the division of responsibilities
and mandates in terms of collecting import duties.


In its written comments about the bill, the Davis Tax Committee, set
up to review SA`s tax regime, said: "It is the considered view of the
(committee) that the assignment of key revenue collection functions of
SARS to the (proposed agency) is inappropriate.


"The (agency) should not have to recreate a revenue-collection
infrastructure that has already been painstakingly created by SARS.


It is recommended the power to delegate tax administration
powers remain with the commissioner of SARS."


Home Affairs, the Police Ministry and the Treasury remain divided over
how to proceed on the bill. Parliament has given the three departments
until September 13 to consult with their political principals — Malusi
Gigaba, Nathi Nhleko and Pravin Gordhan — after which they are
expected to make final submissions on the bill.


Home affairs is eager to see the bill finalised, but the Police
Ministry and the Treasury are opposed to it because the proposed
legislation widely duplicates their mandates and threatens to usurp
their critical functions.


Home affairs director-general Mkuseli Apleni, who last week pleaded
his department`s case in Parliament, said SA`s 72 ports of entry posed
a risk to security and warranted an "integrated and co-ordinated"
agency.


"Since 1994, we demilitarised and rationalised our borders. The
consequence of various institutions in border management and customs
is silos." A border agency would be led by an appointed commissioner
and would perform law-enforcement functions at ports of entry,
including searches, guarding and intelligence, he said.


This is a key sticking point because the agency would be in direct
conflict with SARS`s mandate and functions.


Apleni insisted the bill had been approved by Cabinet.


David Chilembe, a senior police official, said: "You will need police
to perform certain functions. Law enforcement will involve (effecting
arrests), opening dockets, investigations and intelligence gathering —
these are things only the police can do at ports of entry."


The police have nearly 7,000 personnel at the 72 ports of
entry.


Ismail Momoniat, head of tax and financial services at the Treasury,
said there should be no ambiguity in the customs and tax regime.


Decentralising this function could expose SA`s customs tax
collection system to risk.


ANC MP Yunus Carrim said: "You`ve had seven years.... Stop expecting
us to do your job for you. Come back with a reasonable consensus, even
if it is not a complete one."


DA MP David Maynier said the bill needed to provide clarity on the
proposed agency`s intelligence-gathering functions and why creating a
new entity was preferable to optimising existing ones.