SOE reform has been too slow, says AG

The Auditor-General’s office says the government has been too slow in turning around ailing state-owned enterprises.

The failure to submit financial statements for years, particularly in the case of South African Airlines, and the delays by others such as Eskom, has also made it difficult to form an accurate picture of the state of their finances.

Briefing Parliament’s public enterprises portfolio committee on Wednesday on the annual audited statements, the AG’s office says there’s been little improvement in their audit outcomes.

The Auditor-General’s office says while it supports the department’s initiative to turn around state-owned entities, the reality is, the pace has been too slow.

The AG’s Fhumulani Rabonda: “There’s an urgent need to finalize the SOE reforms that have been announced by the government and that includes the finalization of the shareholder management bill and the SOE funding criteria.”

Rabonda says a lack of funding criteria for these entities, is causing policy uncertainty.

“Without clarity of what is really the funding criteria of these SOEs that government is committed to work on, these entities do not know where their next funds will come from.”

Transnet has been the biggest culprit in terms of irregular expenditure of over R1 billion.

The AG’s office says the figure could be far higher, due to a preferential procurement exemption granted by the finance minister.

-EWN

In other news – No regrets for Zodwa Wabantu after terminating 11 pregnancies

South African dancer, Zodwa Wabantu has reportedly defended her decision to disclose information of her apparent 11 abortions.

Speaking to a local publication, Zodwa Wabantu said her decision to have that many abortions was because she was idiotic and did not use a condom. However, she does not regret her decision to terminate the pregnancies. Learn More