Outa welcomes withdrawal of Eskom exemption: ‘Govt not applying its mind’

Finance Minister Enoch Godongwana on Wednesday told members of Parliament that the decision had been placed on hold pending further consultation with the auditor general, as well as Eskom auditors.

Outa is one of several organisations that have lambasted Treasury for what some have described as an attempt to conceal corruption and administration at the already struggling entity.

“That we believe was a very bad decision that was widely reported on and criticized. We don’t believe it was in the best interest of Eskom from a lending, a credit ratings point of view, and even from a transparency and accountability point of view,” said Outa CEO Wayne Duvenhage.

He echoed the sentiments of MPs who grilled the minister during a virtual briefing where he had been called to offer clarity on the decision.

“We believe govt is not applying its mind, shooting from the hip and possibly badly advised on some of these decisions they are making,” he added.

Chairperson of the Standing Committee on Public Accounts Mkhuleko Hlengwa said the minister was ill-advised.

He called on Godongwana to permanently abandon the exemption.

“From where I am seated Eskom does not deserve an exemption of anything. An exemption exacerbates an already dire situation at the utility.

The advice I would like to present to you minister is that don’t withdraw this exemption for now. Withdraw it in its entirety, completely and forever, and insist on an Eskom that is going to conduct its business operation in consistency with the law. And, for national treasury do not aid and abet the corruption that is taking place at Eskom.”

Treasury has denied that the exemption was intended to hide irregular expenditure from potential investors, saying the utility would still have to report this – especially if such expenditure is due to corruption – in Eskom’s annual report.

At the same time, Outa has also welcomed the announcement that government has revoked the national state of disaster for electricity.

The announcement comes as the public grapples with stage 4 power cuts and the prospects of a powerless winter.