Morné Mostert, AfriForum’s manager for local government affairs, said it is critical that transparency in terms of financial management prevails at any state institution, but especially at Eskom due to the power crisis that the country is experiencing.
“We are consulting with our legal team to bring a review application so that this decision of the National Treasury is set aside,” he said,
The organisation said it believes the only way energy provision will improve is if reliable, independent organisations, where transparency and good financial management prevail, contribute “a lot of power to the network”.
The Organisation Undoing Tax Abuse (Outa) also voiced its concern, saying it fears the exemption creates opportunities for corruption and/or financial mismanagement, which would harm the public interest.
Given government’s history of excessive corruption and maladministration, there is an extremely high level of mistrust in government, it said.
Outa CEO Wayne Duvenage said if the intent was to cut back on red tape in an effort to sort out the electricity crisis, one could possibly argue for some exemptions. “But we are very concerned that this decision will lead to even more fruitless and wasteful expenditure, something that Eskom, our country and we the citizens, can ill afford.”
“Even if the exemptions come with conditions, how can we be sure that there will be accountability, as that was clearly lacking in the past?”
Outa, which has brought legal challenges opposing the Karpowerships and the declaration of the electricity state of disaster, said it was writing to Godongwana in a bid to understand the purpose of these regulations and ensure they align with the principles of transparency, accountability, and good governance in the public sector.
“Once we receive an answer from the minister, we will decide on our next steps. We cannot allow even more deviations from regulations,” said Duvenage.
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Transparency at Eskom is critical: Lobby groups urge review on finance exemption
Image: 123RF/NUPEAN PRUPRONG
AfriForum says it is going to bring a review application against the National Treasury’s decision to grant exemption to Eskom in terms of irregular and wasteful expenditure at the state entity.
Finance minister Enoch Godongwana has exempted Eskom from regulations under the Public Finance Management Act (PFMA) requiring state-owned companies to disclose any expenditure that does not comply with the provisions of the act.
Eskom explained on Monday that the exemption would see irregular, fruitless, and wasteful expenses be reported in its annual report, as opposed to its annual financial statements.
Morné Mostert, AfriForum’s manager for local government affairs, said it is critical that transparency in terms of financial management prevails at any state institution, but especially at Eskom due to the power crisis that the country is experiencing.
“We are consulting with our legal team to bring a review application so that this decision of the National Treasury is set aside,” he said,
The organisation said it believes the only way energy provision will improve is if reliable, independent organisations, where transparency and good financial management prevail, contribute “a lot of power to the network”.
The Organisation Undoing Tax Abuse (Outa) also voiced its concern, saying it fears the exemption creates opportunities for corruption and/or financial mismanagement, which would harm the public interest.
Given government’s history of excessive corruption and maladministration, there is an extremely high level of mistrust in government, it said.
Outa CEO Wayne Duvenage said if the intent was to cut back on red tape in an effort to sort out the electricity crisis, one could possibly argue for some exemptions. “But we are very concerned that this decision will lead to even more fruitless and wasteful expenditure, something that Eskom, our country and we the citizens, can ill afford.”
“Even if the exemptions come with conditions, how can we be sure that there will be accountability, as that was clearly lacking in the past?”
Outa, which has brought legal challenges opposing the Karpowerships and the declaration of the electricity state of disaster, said it was writing to Godongwana in a bid to understand the purpose of these regulations and ensure they align with the principles of transparency, accountability, and good governance in the public sector.
“Once we receive an answer from the minister, we will decide on our next steps. We cannot allow even more deviations from regulations,” said Duvenage.
TimesLIVE
Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
READ MORE:
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Eskom welcomes exemption on annual reporting of irregular, fruitless and wasteful expenses
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