The decision is already receiving some backlash, with the EFF saying that Finance Minister Enoch Godongwana and National Treasury were operating like the mafia to shield Eskom from accountability.
JOHANNESBURG – National Treasury says it will be issuing an explanation behind its decision to exempt Eskom from declaring irregular and fruitless spending in its accounts.
On Friday, Finance Minister Enoch Godongwana issued a government gazette exempting the power utility from disclosing irregular and fruitless expenditure in its annual financial statements.
According to the Public Finance Management Act, all state entities must provide particulars in their annual financial statements and annual reports of any material losses.
The move by Treasury was criticised by the Economic Freedom Fighters (EFF), with the party saying it was appalled at the attempt by the ANC-led government to hide rampant corruption at Eskom.
National Treasury said the gazette was issued in response to a letter from Eskom board chairperson, Mpho Makwana.
While the power utility has been battling to keep the lights on, it has also been struggling with its balance sheet. But the move to have it exempted from declaring irregular and fruitless expenditure has been seen as an attempt to restore Eskom’s books.
The exemption applies for the 2022/23 financial year, and for the next two years.
But the decision is already receiving some backlash.
In a strongly worded statement, the EFF said Godongwana and National Treasury were operating like the mafia to shield Eskom from accountability.
The party said it would be writing to Parliament’s Standing Committee on Public Accounts (Scopa) on the matter.
Link: https://ewn.co.za/2023/04/03/treasury-to-explain-move-to-exempt-eskom-from-declaring-irregular-expenditure
Source: Eyewitness News
