Auditor-general casts doubt on PetroSA’s going-concern status
Concerns have been expressed by the auditor-general over the ability of state-owned gas-to-liquid fuel company PetroSA to continue operating. This view is based on the fact that the company, which operates the Mossgas refinery in Mossel Bay, suffered a R666m loss in the year to end-March. This follows a loss of R1.6bn in the 2016/2017 financial year. "A material uncertainty exists that may cast significant doubt on the entity’s ability to continue as a going concern," auditor-general Kimi Makwetu said in his report on the company. Red flags are raised over a company’s going-concern status when there are fears that it doesn’t have the required resources to continue operating. The annual report of PetroSA and other companies in the Central Energy Fund (CEF) group was tabled in parliament on Thursday. The company recorded a R14.6bn net operating loss in the 2014/2015 financial year, the biggest by a state-owned entity. This was driven mainly by unsuccessful offshore exploration attempt...
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