In what can be seen as a victory for the public and opposition political parties, South Africa’s minister of finance, Enoch Godongwana, has withdrawn Eskom’s exemption from having to report irregular, wasteful and unfruitful expenditure. He says that he will have further consultation with the auditor-general and Eskom's auditors before reworking Eskom’s exemption from adherence to the Public Finance Management Act.
The minister had issued a special government gazette exempting Eskom from reporting in its annual financial statements on wasteful and irregular expenditure that did not arise from corruption. The move was apparently an attempt to help Eskom achieve an unqualified audit and boost its credit rating.
However, following intensive discussions with the auditor-general, and in response to public outrage and harsh criticism from political opponents, the minister has withdrawn the exemption.
"In the light of those comments and comments from the public, we have decided to withdraw the gazette for now and have more detailed discussions with the AG and Eskom's auditors so that the framing is proper and the checks and balances are tightened," Godongwana said.