AG welcomes Godongwana withdrawal of Eskom exemptions, saying it will allow sufficient consultation

05 April 2023 - 16:14
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Auditor-general Tsakani Maluleke. File photo.
Auditor-general Tsakani Maluleke. File photo.
Image: Alaister Russell

Auditor-general (AG) Tsakani Maluleke has welcomed finance minister Enoch Godongwana’s decision to withdraw a gazette granting Eskom exemption from disclosing irregular, fruitless and wasteful expenditure in its financial statements.

In a statement on Wednesday, Maluleke said she believed the announcement will allow for sufficient consultation with the National Treasury, Deloitte, as Eskom’s appointed auditors, and her office to address any technical issues that may have arisen.

Maluleke acknowledged that the granting of exemptions from the Public Finance Management Act is the prerogative of the finance minister as empowered by section 92 of the Act.

It is important that any exemptions granted should continue to promote transparency and accountability in the public sector,” she said.

The auditor-general has a constitutional mandate to strengthen the country’s democracy by enabling oversight, accountability and governance in the public sector through auditing, said Maluleke.

It also has a responsibility to exercise its mandate of auditing and ensuring that the findings are communicated in a manner that enables oversight and accountability, she said.

Godongwana told a joint meeting of five parliamentary committees on Wednesday that the exemption will be withdrawn to properly frame the Treasury’s intentions and to tighten checks and balances for corruption.

The Treasury took the decision to withdraw the gazette after a meeting with Maluleke on Tuesday and having taken into account public outrage about the matter, he said.

“There were comments by the AG which have got to be part of the framing of the gazette and in the light of those comments and comments by the public, we have decided to withdraw the gazette for now and take these comments into account.”

Godongwana said they would consult the AG and Deloitte to ensure the framing of the gazette is proper and checks and balances for corruption are tightened.

He said the intention of the exemption was to allow Eskom to have “better” financial statements, while creating an environment where there is transparency on corruption and irregular expenditure.

“The intention is not to hide anything,” he said.

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