Keeping the lights on has cost public purse at least R23 billion in just 90 days through Eskom’s deviation payments

16 October 2024

In a presentation (attached here) to Parliament’s Standing Committee on Appropriations, which Build One South Africa (BOSA) leader Mmusi Maimane MP chairs, National Treasury has revealed that in the first three months of the 2024/25 financial year, Eskom has pursued 639 deviations, amounting to approximately R23 billion in public funds. This is an increase from R18.6 billion spent in the preceding three months.

The reason provided is that “the ongoing energy crisis necessitates emergency procurement for additional power resources”. That means that these funds were spent with little due diligence and without following regular public procurement processes.

Eskom is relying on Treasury Regulations 16A6.4 which states that:

“If in a specific case it is impractical to invite competitive bids, the accounting officer or accounting authority may procure the required goods or services by other means.”

What is transpiring is that due to a government created energy crisis, the very same government is panic spending to keep the lights on, and is doing so with very little oversight and accountability of said spending.

This is mismanagement of finances at the very same time government is asking citizens to pay exorbitant additional costs for electricity through NERSA’s 36% tariff increase.

BOSA will use the upcoming mid-term budget process to table proposals on how to achieve fiscal discipline, while redirecting any additional resources towards services that improve the lives of citizens.

Issued by Roger Solomons, BOSA Acting Spokesperson, 16 October 2024