Eskom accepts its fate after Treasury denies it exemption on annual reporting of wasteful expenditure

09 June 2023 - 15:55
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Eskom has accepted the National Treasury’s decision to not grant partial exemption pertaining to the Public Finance Management Act and Treasury regulations. Stock photo.
Eskom has accepted the National Treasury’s decision to not grant partial exemption pertaining to the Public Finance Management Act and Treasury regulations. Stock photo.
Image: 123RF/wirestock

Eskom has accepted the decision by the National Treasury to not grant it partial exemption from disclosing irregular, fruitless and wasteful expenditure and material losses from criminal conduct in its annual financial statements. 

“Compliance to the PFMA [Public Finance Management Act] and all applicable legislation remains a priority as Eskom continues to address irregular, fruitless and wasteful expenditure, and we will continuously implement measures to address all the issues that continue to have a negative impact on Eskom’s financial sustainability,” said the power utility.

Finance minister Enoch Godongwana announced earlier this week that he had decided against granting partial exemption.

In March, Godongwana had granted Eskom a partial exemption from section 55(2)(b)(i) of the Act and the Treasury regulation 28.2.1 for three years.

After a public outcry, the Treasury withdrew the gazette granting the exemptions on April 6 and invited public comments on the proposed exemption. 

“In total, 56 comments were received, with 23 in formal correspondence and 33 through emails,” the Treasury said on Wednesday.

The comments covered a spectrum of accounting and reporting, auditing, governance, legal principles, and public interest issues which were duly considered, it said. 

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