Cape Town - South Africans have until Friday to make comments on Eskom’s controversial exemption from disclosing its irregular, fruitless and wasteful expenditure in its annual financial statements for three years.
The debate on the exemption has erupted once again after a public participation process was gazetted on the matter. Finance Minister Enoch Godongwana withdrew the exemption on April 5 to allow for more consultation after public and political outrage.
In a briefing to five parliamentary committees, Godongwana said it was granted to help Eskom improve its credit rating and achieve an unqualified audit.
National Treasury said the exemption was withdrawn to allow for further consultation with the auditor-general (AG), Eskom’s auditors Deloitte, and other key stakeholders to strengthen measures for the reporting of fraud and corruption and to ensure accountability and transparency were maintained.
However, in the same notice withdrawing the exemption, Godongwana invited comments to be submitted for the proposed exemption to go ahead.
“The comment should preferably be in respect of the technical aspects of the proposed exemption that relate to the applicable accounting principles, including oversight and preventive measures to reduce the scope of corruption,” Godongwana.
Acting Treasury director-general Ismail Momoniat said they were engaging with the office of the AG and taking public comments. They will then consider them and only thereafter make any decision on how to proceed.
DA spokesperson on finance Dion George said: “No matter what anyone says or does now, the decision has already been taken that this exemption will be granted.
“If the exemption is granted, the DA will be taking the matter to court,” George said.
He added that this was a transparent attempt to hide important financial information from investors and auditors, and nobody was fooled.
“It is just a further reflection of how poorly South Africa’s public finances are being managed.”
GOOD Party secretary-general Brett Herron said that at a time when the nation suffered from prolonged load shedding, as a result of poor financial and operational management at Eskom, expecting the public to accept an exemption like this demonstrated poor judgement and a complete lack of awareness of public sentiment.
National Treasury said a final decision needed to be taken before the end of the next month to enable Eskom to make the required disclosures before submission of their annual financial statements for audit.
“The financial sustainability of Eskom is an extremely important factor in resolving the energy crisis in South Africa,” Treasury said.
Wayne Duvenage, CEO of the Organisation Undoing Tax Abuse (Outa), said it would be providing its input, however, maintained that the request for Eskom’s exemption was uncalled for and should not be allowed to take place.
“From a legal position, there are a couple of sections in the Constitution which (would indicate) the granting of this exemption could be construed as a transgression of the Constitution,” Duvenage said.