Shivute: Tax fraudsters drumming up political interference

Namibia Revenue Agency (NamRA) boss Sam Shivute says there are concerted efforts by people who fraudulently claimed over N$830 million in tax refunds to use politicians to put pressure on the agency and get off the hook for their crimes.

Investigations into the tax refund scam, which Shivute said is bigger than the N$660 million scandal that rocked the Government Institutions Pension Fund (GIPF) some years back, implicates a total of 1 168 taxpayers associated with 84 institutions.

“This case is bigger than many cases people have heard of here, but this is not a NamRA case; it is a serious state case,” he said.

Shivute added that this amount is expected to increase as investigations continue.

The amount initially stood at N$15 million, but further investigations brought it to the current N$833 million.

He said there is prima facie evidence of fraud, which was committed with the help of some NamRA insiders, adding that police are undertaking criminal investigations that could lead to arrests and prosecution.

“The reason why no one has been arrested so far is because that is not within NamRA’s mandate. Ours is an administrative function, that’s why we are engaging those who claimed this money fraudulently. Paying back the money does not mean they are exonerated from criminal investigations,” he said on The Evening Review, airing tonight.

Driving a narrative

NamRA will implement the law to the letter, irrespective of public sentiments and attempts to politicise the matter, Shivute said.

“Some of the strategies they [people being investigated] are using is to take this thing to all the politicians to pressure NamRA.

"The people who have benefitted unduly [are] now driving a narrative. All of a sudden, they are the ones who are victims and they want to politicise this,” he remarked.

According to Shivute, the state lost money which could otherwise have been used to buy essential goods.

“That money is supposed to be buying Panado; this money is supposed to buy vehicles for the Namibian Police. What happens if the state is not getting funding? It will not be able to protect and provide for its citizens,” he said.

Ignorance not an excuse

NamRA, Shivute added, had solid evidence that the involved individuals benefitted unduly from the state.

“The evidence is there; these are not allegations. The records are there [of] when the claims were submitted, when the monies were paid. Some, of course, may argue that they were tricked by the accountants or bookkeepers, but a crime is a crime; ignorance of the law is not an excuse,” he said.

Affected individuals had expressed a desire to see NamRA extend debt repayment periods to up to 15 years.

To this, Shivute said NamRA was not empowered to make any decisions on repayment periods stretching beyond what the law prescribes.

“NamRA only operates within the confines of the law; we do not have discretionary power on our own. The commissioner cannot do what is not prescribed in the law. The Finance Act provides that when you have a debt due to the state, [the repayment period is 36 months], therefore there is no power for the commissioner to extend that,” he said.

Favourable terms

National Unity Democratic Organisation (Nudo) secretary-general Jossie Kauandenge voiced his support for affected individuals in their fight against NamRA.

“My take is that the people are not unwilling to pay, they want favourable terms.

“If you deduct my whole salary, how will I survive? People are willing to pay, but please, can we negotiate terms?”