DA seeks more transparency in the issuing of government guarantees
Party wants greater parliamentary oversight of decisions as risks to fiscus mount
The DA has proposed an amendment to the law that governs the management by the government and its entities of their finances. The proposed amendment to the Public Finance Management Act will require greater parliamentary oversight over decisions taken by the government with regard to requests for guarantees, indemnities or securities. The amendment bill, proposed by DA deputy finance spokesperson Alf Lees, comes at a time when the government guarantees to state-owned enterprises (SOEs) have mounted considerably. These guarantees are treated as contingent liabilities and pose a risk to the fiscus should any of the financially struggling SOEs default on their debts. The issue has been flagged as a concern by credit ratings agencies. Total government guarantees amounted to R463bn in August, of which R350bn is to Eskom, R39bn to the SA National Road Agency (Sanral), R25.7bn to the Trans Caledon Tunnel Authority and R19bn to SA Airways. Currently the extent of the government guarantees i...
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