objected to the exemption granted to Eskom last month which would exempt the utility from an audit by the Auditor-General of South Africa , lessening the possibility of a qualified audit for non-compliance with the PFMA.
The utility, which is still looking for a new chief executive officer, has been plagued with corruption allegations that have left it unable to meet electricity demand in the country. Its debt of more than R400 billion has been labelled as the biggest financial risk currently facing South Africa.
On Tuesday, Godongwana said the decision to deny Eskom the partial exemption follows 56 public comments covering a broad spectrum of accounting and reporting, auditing, governance, legal principles and public interest issues have been duly considered. In February, Godongwana announced that the government would take over R254 billion of Eskom’s loans into its balance sheet as the utility struggled to earn enough to service its debt and running costs.