Controversial Eskom exemption withdrawn 'for now'
Finance Minister Enoch Godongwana told MPs on Wednesday that he has decided to withdraw the exemption of Eskom from the Public Finance Management Act "for now" to have further consultation with the auditor-general and Eskom's auditors.
A special government gazette issued by Godongwana on Friday exempted Eskom from reporting in its annual financial statements on wasteful and irregular expenditure that did not arise from corruption.
"Yesterday we had intensive discussions with the auditor-general (AG) and in that discussion there were some contributions from the AG that need to be part of the framing of the gazette," Godongwana said.
"In the light of those comments and comments from the public, we have decided to withdraw the gazette for now and have more detailed discussions with the AG and Eskom's auditors so that the framing is proper and the checks and balances are tightened."
There has been widespread criticism of the exemption, which aimed to assist Eskom achieve an unqualified audit and boost its credit ratings. Treasury was also concerned that a qualified audit opinion will trigger Eskom's loan covenants and increase Eskom's cost of borrowing. A similar exemption was provided to Transnet last year.
DA spokesperson on finance Dion George said on Tuesday that the party had briefed its legal team to look into the legalities of the exemption, while ANC alliance partner Cosatu called it "a green light to criminals that they can go feast and loot with impunity".
Less than three hours after Godongwana announced the withdrawal, government said it officially terminated the national state of disaster it implemented just under two months ago to deal with South Africa's energy crisis.
Eskom said on Wednesday afternoon that it would comment on either matter yet, "pending our engagement with government".
Comments
Research Reports
Projects
Latest News
Showroom
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
