Eskom exempted from disclosing irregular, fruitless and wasteful expenditure

JOHANNESBURG - Eskom has been exempted from some provisions of the Public Finance Management Act.

The National Treasury issued the notice in the government gazette.

Finance Minister Enoch Godongwana has rubber-stamped the move.

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This means the power utility will not need to disclose any irregular expenditure and fruitless and wasteful spending.

This applies to the financial years 2022/23, 2023/24 and 2024/25.

The State Capture Commission found that Eskom had previously entered into irregular contracts worth almost R15 billion.

In an interview with eNCA's Annika Larsen, former CEO Andre de Ruyter claimed the parastatal was losing R1 billion a month due to corruption and theft.

Eskom has been exempted from some provisions of the Public Finance Management Act. National Treasury issued the notice in the government gazette. #eNCA #DStv403 pic.twitter.com/J7OEPzfn7l

— eNCA (@eNCA) April 3, 2023

Meawnhile, Western Cape Premier Alan Winde has criticised Eskom's exemption from revealing its irregular, fruitless, and wasteful expenditure.

Winde says the move by National Treasury is outrageous.

He is questioning the motive behind the decision, saying it will formalise corruption at the power utility.

The Premier believes this will prove to be a major setback in dealing with the energy crisis and fixing Eskom.

He also says it will not help reverse the country grey-listing.

Winde says the DA is considering challenging the exemption.

Western Cape Premier Alan Winde has criticised Eskom's exemption from revealing its irregular, fruitless, and wasteful expenditure. #eNCA #DStv403 pic.twitter.com/Zpx2mqOPpc

— eNCA (@eNCA) April 3, 2023