Granting Eskom exemption from reporting irregular expenditure does not sit well with civil organisations as it could hide more corruption.🔌
, minister of finance, granted Eskom a partial exemption from section 55 of the Public Finance Management Act and Treasury Regulation 28.2.1 while declining exemptions under sections 55 and of the PFMA. This means they would not be required to disclose irregular and fruitless expenditure in its annual financial statements for the past financial year, or the next two years, its irregular expenditure was R67.1 billion, although most of it was from previous years.
Allowing Eskom to report on irregular and fruitless and wasteful expenditure in its annual report and not in its financial statements, Treasury ensures that reporting transparency and accountability is not compromised and still made public as currently required, while mitigating the risks that could arise if these transactions are reported in the annual financial statements.
Outa believes that the exemption creates opportunities for corruption and financial mismanagement, which would harm the public interest and given government’s history of excessive corruption and maladministration, there is an extremely high level of mistrust in government. He says if this is done to cut back on red tape in an effort to sort out the electricity crisis, one could possibly argue for some exemptions, but Outa is very concerned that this decision will lead to even more fruitless and wasteful expenditure, something that Eskom, the country and its citizens can ill afford.
“We cannot allow even more deviations from regulations,” says Duvenage and adds that Outa is still proceeding with legal challenges opposing the Karpowerships and the electricity state of disaster. Sakeliga also insists that this regulation be withdrawn immediately and says if this does not happen, it will be compelled to approach the court on an urgent basis.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Eskom PFMA exemption concerning' - SABC NewsWestern Cape Premier Alan Winde says National Treasury’s decision to exempt Eskom from disclosing its irregular and fruitless expenditure for the next three years is concerning.
Read more »
Eskom insists PFMA compliance a priority amid fury over exemptionIn its annual financial statements, Eskom has welcomed National Treasury's decision to exempt it from disclosing irregular, fruitless, and wasteful expenditures. ECRNewsWatch ESKOM
Read more »
Outrage over Eskom, Transnet PFMA exemptionsCivil society groups are strongly against the Treasury's decision to exempt Eskom from the Public Finance Management Act.
Read more »
EFF slams Godongwana for exempting Eskom from reporting expense irregularities | The Citizen💡EFF slams Finance Minister Enoch Godongwana’s decision to exempt Eskom from disclosing irregular and fruitless expenditures 💸in its annual financial report 🚶♀️ TheCitizenNews Eskom loadshedding Read the story⬇️
Read more »
Alarm bells ringing at EskomEskom’s latest generation adequacy report is showing red across the board.
Read more »