Eskom now expected to declare wasteful expenditure

Eskom will now be required to declare irregular, fruitless and wasteful expenditure in its financial statements.

This follows Finance Minister Enoch Godongwana’s withdrawal of his decision to exempt the power utility from doing so.

The withdrawal of his decision has been published in a special government gazette.

Godongwana has told five committees of Parliament that there was no ulterior motive for his decision.

He says it was taken on the basis of what he terms the power utility’s financial sustainability.

“We have heard the comments and everything else yesterday and with the intense discussion with the DG [acting Director-General Ismail Momoniat]. In that discussion, there were some comments by the AG [Auditor-General] which is going to be part of the framing of the gazette. In light of those comments and the general comments by the public, we decided to withdraw the gazette for now and also take into account those comments and also have the detailed consultation with the Auditor-General,” adds the Minister.

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