Eskom will not be granted partial exemption from disclosure of expenses: Godongwana 

Finance Minister Enoch Godongwana says Eskom will not be granted a partial exemption from disclosing irregular, fruitless and wasteful expenditures and material losses from criminal conduct in its annual financial statements.

In April, Godongwana told Parliament that he had decided to withdraw the exemption granted to Eskom from disclosing irregular, fruitless, and wasteful expenditures in its annual financial statements after public criticism of his decision.

Godongwana says the Eskom board needs to do more operationally to reduce the scope of fraud and corruption before such an exemption can be considered and for it to be effective.

He says it is critical for the country that state-owned entities such as Eskom are not dependent on fiscal allocations and guarantees for their capital and operational funding requirements.

Godogwana says Treasury recognises the need to support and strengthen Eskom and other SOEs in reversing the effects of state capture.

He says, by so doing, this will make them more agile and responsive to their constitutional mandates and begin to play a more significant role in the economy.

Godogwana says Treasury will continue to assist Eskom to strengthen its mechanisms to prevent, detect and investigate any financial irregularities and ensure that acts of fraud and corruption are fully and properly reported, regardless of the reporting requirements.”

VIDEO: In April, Finance Minister Enoch Godongwana explained the withdrawal of Eskom’s exemption: