Eskom gags results after bad audit

Eskom cancelled yesterday's financial results presentation at the 11th hour "due to unforeseen circumstances".

The state-owned power agency later rescheduled the keenly anticipated release for next Wednesday.

The postponement came after Eskom's auditors raised red flags about serious reporting irregularities.

On Friday, the Mail and Guardian revealed that auditors SizweNtsalubaGobodo had reported Eskom to the Independent Regulatory Board for Auditors.

Under the Auditing Profession Act, a reportable irregularity is financial reporting that covers up something that will cause a loss to the company, is fraudulent, could be theft or is an unlawful act or omission.

Eskom spokesman Khulu Phasiwe told Bloomberg that one issue raised by auditors related to contracts given to a firm linked to the stepdaughter of former acting Eskom CEO Matshela Koko.

A second matter had to do with the rehiring of Brian Molefe in May for three weeks before his reappointment was rescinded following a public outcry.

- TimesLIVE