Eskom exemption makes mockery of SA, says Black Business Council

The Black Business Council (BBC) has requested a meeting with finance minister Enoch Godongwana and Deputy President Paul Mashatile to discuss a decision to exempt Eskom from regulations under the Public Finance Management Act (PFMA) requiring state-owned companies to disclose expenditure that does not comply with the provisions of the act. 

The decision has been met with widespread shock.  

A notice in the Government Gazette of March 31 stated that Eskom will be exempt from having to disclose in its annual reports for three years irregular, fruitless or wasteful expenditure, starting from the financial year to end-March. 

The utility said it had been engaging stakeholders from the Treasury and the department of public enterprises for several months on its proposal to seek the minister’s approval for the exemption and departure application.

With the exemption, irregular, fruitless, and wasteful spending will be reported in Eskom’s annual report rather than in its annual financial statements.

The integrated report is tabled by public enterprises minister Pravin Gordhan in parliament. 

Eskom pledged to respect and co-operate with supervisory authorities, including the public enterprises minister as its executive authority, the Treasury, the auditor-general, parliament and other relevant ministries. 

The BBC has expressed outrage, saying it was an “irrational decision” that desperately seeks to shield the “incompetent former CEO of Eskom André de Ruyter from his lack of compliance with the PFMA. This makes a mockery of our beloved country”. 

“The BBC will seek an urgent meeting with the minister of finance and the deputy president [in his capacity] as leader of government business to raise this serious anomaly. 

“The BBC stands firm on transparency, openness and accountability. Exemptions in the legislation can’t be abused and be used willy-nilly to protect noncompliance by any individual or organ of state.” 

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