A general view of the coal-fired Tutuka power plant operated by Eskom in Standerton, on December 18, 2022. (Photo by MARCO LONGARI / AFP)
Shocking move: Eskom exempted from disclosing financial losses
The exemption, granted for the last financial year and the next two, has been met with criticism from opposition parties and analysts.
A general view of the coal-fired Tutuka power plant operated by Eskom in Standerton, on December 18, 2022. (Photo by MARCO LONGARI / AFP)
The National Treasury has exempted Eskom from disclosing irregular and fruitless expenditures in a gazette published on 31 March.
READ: Treasury accused of operating like a mafia over Eskom exemption
Power utility exempted from disclosing irregular expenditures
With the gazette, Finance Minister Enoch Godongwana exempted the power utility from Section 55(2)(b)(i) of the Public Finance Management Act (PFMA) for the last financial year and the next two years.
The PFMA requires Eskom to “disclose any material losses through criminal conduct and any irregular expenditure and fruitless and wasteful expenditure that occurred during the financial year,” per the Daily Investor.
According to News24, the exemption comes after a letter to Treasury from Eskom Chairperson Mpho Makwana.
The State said the power utility would still be required to disclose all information needed by IFRS and general debt listing requirements.
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Conditions attached to exemption fail to appease opposition parties and energy analysts
The exemption comes with set conditions, including that all irregular, fruitless and wasteful expenditures must be detailed in Eskom’s annual report.
The move was met with sharp criticism.
Energy analyst Chris Yelland said, “Is this really the way to deal with an electricity disaster in South Africa? Good grief!” while politician Mmusi Maimane said, “This sounds like a looting scheme.”
The Economic Freedom Fighters (EFF) “vehemently condemned” the exemption in a two-page statement on Sunday evening.
“The EFF will not stand idly by while corruption festers. We will write to the Chairpersons of the Standing Committee on Public Accounts (SCOPA), Standing Committee on Finance (ScoF) and the Portfolio Committee of Public Enterprises to seek permission from the Speaker of the National Assembly to convene an urgent joint meeting to receive a detailed report explaining the rationale behind such a nonsensical decision,” said the opposition party.
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