Finance minister Enoch Godongwana says Eskom will no longer be granted an exemption from reporting fruitless and wasteful expenditure. In the meantime, Treasury will work on reforms for the Public Finance Management Act.
However, following media and public backlash, the minister“The Minister recognises the commitment of the Eskom board and management to fight and expose fraud and corruption, and the additional compliance and reporting burden facing Eskom and other state-owned entities ,” Treasury said.
“The National Treasury also engaged with audit firms, professional auditing and accounting bodies, a rating agency, and other relevant authorities to discuss the challenges and seemingly onerous compliance reporting requirements applicable to state-owned Entities such as Eskom.” “In addition, as part of the Eskom debt relief arrangement, the Minister of Finance has instituted additional reporting obligations on Eskom, which the entity will be required to submit to Parliament and oversight structures.”
Treasury remains of the opinion that SOEs face legitimate technical challenges regarding compliance reporting, and the need to differentiate between corrupt and suspicious transactions and expenditure made in good faith but not necessarily complying with the plethora of financial and non-financial laws and rules.
“The National Treasury is committed to collaborating further with relevant stakeholders and authorities to contribute to these reforms and ensure that the PFMA adequately addresses the complexities of financial reporting in the public sector.”
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 not granted partial exemption from disclosing irregular expenditure: Godongwana - SABC NewsFinance Minister Enoch Godongwana says Eskom will not be granted a partial exemption from disclosing irregular, fruitless and wasteful expenditure and material losses from criminal conduct in its annual financial statements.
Read more »
Eskom denied exemption on annual reporting of wasteful expenditureEskom denied exemption on annual reporting of wasteful expenditure: Finance minister Enoch Godongwana has decided not to grant Eskom a partial exemption from disclosing irregular, fruitless and wasteful expenditure and material losses from criminal…
Read more »
Treasury denies Eskom exemption on disclosure of irregular expenditureIn April, Finance Minister Enoch Godongwana granted Eskom the request, but backtracked on the decision following public outcry.
Read more »
Eskom burns up R8bn of diesel in two months for emergency powerRamokgopa says R30bn available for diesel to run the open-cycle gas turbines this financial year will not be enough
Read more »
EDITORIAL: Migration from Eskom has begunPower utility’s sales are likely to decline 2% a year, says Fitch
Read more »
Eskom burns up R8bn of diesel in two months for emergency powerRamokgopa says R30bn available for diesel to run the open-cycle gas turbines this financial year will not be enough
Read more »