BBC criticises Godongwana’s decision to exempt Eskom from disclosing irregular expenditure

The Black Business Council has joined others in blasting Finance Minister Enoch Godongwana for granting power utility Eskom a partial exemption from regulations that require State Owned Entities to disclose expenditure that does not comply with the provisions of the Public Finance Management Act.

The notice is published in the government gazette. It says Eskom will be exempt from disclosing irregular expenditure not linked to criminal activity in its annual reports for three years, starting from the financial year that runs until end-March 2023.

However, reports say wasteful and irregular expenditure will still be recorded in the Eskom Integrated Report. The council has labelled the move “irrational”.

Black Business Council CEO Kganki Matabane, “Our view is that the decision is irrational, especially coming from the minister of finance- we’re expecting the minister of finance to be the one who is a custodian to clean governance- who’s a custodian to accountability, who looks after the purse of the nation- and as such he’s supposed to be the one who encourages people to clean up their act, instead of using the legislation to cover up some of the things that were done.”

Video: BUSA reacts to Eskom’s PFMA exemption: Cas Coovadia

[embedded content]

Meanwhile, Lobby group AfriForum says it will bring a review application in court against the national Treasury’s decision to grant exemption to Eskom in terms of reporting irregular and wasteful expenditure in its annual reports.

Afriforum’s Morné Mostert says it is critical that transparency in terms of financial management prevails at any state institution, but especially at Eskom.

Afriforum says it will not allow the government to continue with these unconstitutional and underhanded practices that will further curb the country’s power generation capacity and economic growth.

Video: OUTA reacts to Eskom’s PFMA exemption

[embedded content]