Question NW465 to the Minister of Finance
19 May 2016 - NW465
Maynier, Mr D to ask the Minister of Finance
(1) Whether consultants were employed to advise on the restructuring of the SA Revenue Service (SARS); if so, what was the (a) name of the consulting firm and (b)(i) total cost and (ii) breakdown of the cost of employing the specified firm; (2) what is the (a) estimated cost and (b) breakdown of the estimated cost of restructuring SARS?
Reply:
The South African Revenue Service has submitted the following information. Please note that the Minister is unable to verify the content.
1. The South African Revenue Service did employ consulting firms to advise on the SARS restructuring. These were Bain Consulting and Gartner Ltd.
(a) These were Bain Consulting and
(i) Total order = R155,125,728.00 (including contingency claims of 10% so far only R700 000 has been claimed). Paid to date R = R103,609.629.40
(b) Gartner Ltd.
(ii) Total order = R157,442,590.00 (including contingencies of 10%). Paid to date = R60,555,640.00
2. The total contracted figure is R312,569,318.00
Contracts with service providers were concluded based on fixed amounts for services to be rendered. That being said, the overall cost of the restructuring of SARS cannot be estimated at this point in time as the process is still underway.