Finance Minister Enoch Godongwana Withdraws Eskom’s PFMA Exemption After Public Outcry

Finance Minister Enoch Godongwana Withdraws Eskom’s PFMA Exemption After Public Outcry

  • Finance Minister Enoch Godongwana has U-turned on the National Treasury's decision to grant Eskom a PFMA exemption
  • The government's decision was announced on Wednesday, 5 April, following public outcry
  • South Africans are cautiously celebrating government's decision to withdraw the exemption

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CAPE TOWN - Finance Minister Enoch Godongwana has decided to withdraw the Public Finance Management Act (PFMA) exemption granted to Eskom on Wednesday, 5 April.

Minister Enoch Godongwana withdraws Eskom exemption
Eskom will no longer be exempt from disclosing irregular expenditures for the next three years. Images: Dwayne Senior & Gianluigi Guercia
Source: Getty Images

This comes after citizens and political organisations stood against the National Treasury's decision, saying it would fuel corruption at Eskom.

National Treasury withdraws Eskom exemption after discussion with the Auditor-General

Godongwana told Members of Parliament that the National Treasury had a discussion with the Auditor-General and decided to withdraw the gazetted exemption, reports News24.

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"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."

According to SABC News, if the National Treasury moved ahead with the PFMA exemption, Eskom would not be required to report irregular, wasteful and fruitless expenditure for the next three years.

South Africans weigh in on the Eskom exemption being withdrawn

@ZukxDaKid said:

"Withdrawn because there was an outcry."

@nonlinearnodes said:

"Withdrawn because people noticed…"

@southy_citizen said:

"Did they mention that this exemption has actually been in place for the last two years? They just got exposed and now they are backtracking. What happened to all those important reasons for the exemption that the minister outlined? The PR administration is in full swing!"

Read also

DA to take legal action after Treasury exempted Eskom from disclosing wasteful and irregular expenditure

@Vammy40568665 said:

"We should make it a norm to read the government gazette, these people are busy selling the country, kancane kancane."

@Sandton_prof said:

"You just know that elections are close when ANC listens to people. We should deal with them next year."

@Mosadihube said:

"So the exemption awarded to @Eskom_SA is withdrawn! What was the exemption for in the first place? I’m happy at @ParliamentofRSA is addressing this irregularity and quite baffling exemption."

André de Ruyter to meet with Parliament watchdog to discuss corruption at Eskom, SA worries about his safety

Briefly News previously reported that former Eskom CEO André de Ruyter has agreed to go to Parliament to discuss corruption at the power utility with the Standing Committee on Public Accounts (Scopa).

The Parliamentary watchdog's chair, Mkhuleko Hlengwa, announced on Thursday, 30 March, that he received a response to an invite issued on 17 March that De Ruyter would appear before Scopa.

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The former CEO agreed that he would present a written submission on allegations of corruption he made before leaving the ailing power utility. De Ruyter also left it up to the Scopa to decide when he should appear before the committee.

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