Eskom exempted from reporting irregular expenditure

PHUTI MOSOMANE

ESKOM has been granted an exemption from disclosing irregular, fruitless, and wasteful expenditure in its annual financial statements, following a special government gazette issued by the Minister of Finance, Enoch Godongwana.

The gazette, published on the last day of the financial year, grants Eskom exemption from Section 55 (2) (b) (i) of the Public Finance Management Act (PFMA) for 2022/23 and the following two years.

Eskom board chairperson, Mpho Makwana, made the request for exemption. 

In a media statement on Monday, National Treasury defended its decision to exempt Eskom from disclosing irregular and fruitless expenditure in their financial statements.

“Eskom is not exempted from ensuring that it takes effective and appropriate steps to prevent irregular, fruitless, and wasteful expenditure,” said Treasury.

“This exemption still requires Eskom to disclose financial and non-financial information on irregular, fruitless and wasteful expenditure but only in its annual report. All other institutions are