AfriForum is approaching the court over Eskom and the minister’s “dishonesty”

3 April 2023

AfriForum is going to bring a review application against the national treasury’s decision to grant exemption to Eskom in terms of irregular and wasteful expenditure at this state entity. This follows after the Minister of Finance, Enoch Godongwana, announced in the Government Gazette that Eskom will henceforth enjoy this exemption from the Public Financial Management Act and the regulations of the treasury. This exemption will mean that Eskom will not have to report on any irregular and wasteful expenditure for the 2022/23, 2023/24 and 2024/25 financial years, and that there will therefore be no accountability for financial management at Eskom during this period.

According to Morné Mostert, AfriForum’s manager for Local Government Affairs, it is critical that transparency in terms of financial management prevails at any state institution, but especially at Eskom due to the power crisis that the country is currently experiencing. This exemption will pave the way for further corruption on an extremely large scale at an institution that is already suffering from its consequences, such as the poor maintenance and repair of infrastructure. There is also no chance for improving Eskom’s power generation capacity if there is no transparency and accountability.

AfriForum will not allow the government to continue with these unconstitutional and underhanded practices that will further curb the country’s power generation capacity and economic growth.

“We are consulting with our legal team to bring a review application so that this decision of the national treasury is set aside. This effort by the minister shows once again that the solution to South Africa’s power crisis does not lie with the government, but with the capacity of private institutions and community organisations. The only way the situation will improve is if reliable, independent organisations where transparency and good financial management prevails, contribute a lot of power to the network,” concludes Mostert.

Issued by Morné Mostert, Manager: Local Government Affairs, 3 April 2023