ESKOM: TREASURY BINS FINANCIAL REPORTING PARTIAL EXEMPTION PROPOSALS

ESKOM: TREASURY BINS FINANCIAL REPORTING PARTIAL EXEMPTION PROPOSALS

• 07 June 2023
• State Owned Enterprises
• SA Legal Academy

Eskom will not be granted a partial exemption from disclosing irregular, fruitless and wasteful expenditure and material losses from criminal conduct in its annual financial statements. This has been confirmed in a National Treasury media statement on the outcome of a consultation process begun in April 2023.

As SA Legal Academy reported at the time, public consultations followed the withdrawal of a partial exemption gazetted on 2 April 2023.

According to the statement, National Treasury is nevertheless concerned about the ‘legitimate technical challenges’ state-owned enterprises face in meeting compliance reporting requirements. This is noting ‘the need to differentiate between corrupt and suspicious transactions, and expenditure made in good faith but not necessarily complying with … (a) plethora of financial and non-financial laws and rules’.

With the aim of addressing these challenges and other financial and compliance reporting matters, a ‘revised irregular, fruitless and wasteful expenditure framework’ is being developed under the Public Finance Management Act, 1999, for implementation in 2024.

• media statement
• SA Legal Academy article

Published by SA Legal Academy Policy Watch

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