The National Treasury’s decision not to hold Eskom accountable for wasteful spending over the next three years has been slammed by opposition parties.
On Friday, March 31, Finance Minister Enoch Godongwana gazetted an amendment to Section 55 (2) (b) (i) of the Public Finance Management Act (PFMA) for 2022/23.
The legation requires state entities to disclose details of their annual financial statements that reflect any material losses through criminal conduct, and wasteful expenditure.
This means that in the current financial year and for the next two years, Eskom will be exempt from submitting the financial statements of material loss.
The Treasury is yet to explain the rationale behind its decision but according to some reports, it said it “had issued the gazette in response to a letter from Eskom chairperson Mpho Makwana”.
On Monday, Western Cape Premier Alan Winde slammed the move, saying: “The fact that it has been given the go-ahead by Finance Minister Enoch Godongwana makes it even more concerning and perplexing. It seems that rather than stopping corruption, it is being formalised at Eskom.”
Winde also questioned whether this was “an attempt to protect the Mafias which are holding the company hostage”.
“What are they trying to conceal?” he asked.
The EFF has also rejected the decision, calling it “irrational, reckless and deplorable”.
“Eskom is encountered with extreme levels of corruption… we are appalled by the desperate and sickening attempt by the governing party to hide the rampant corruption at Eskom that has plunged our country into avoidable electricity blackouts.”
The EFF said it planned to seek permission from National Assembly Speaker Nosiviwe Mapisa-Nqakula to convene an urgent joint meeting, so that they could receive a detailed report explaining the rationale behind the decision.
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