Eskom is exempt from declaring irregular and fruitless spending in its accounts.

Key Highlights :

1. Eskom has been granted an exemption from a requirement in the Public Finance Management Act (PFMA) that state entities disclose any material losses through criminal conduct and any irregular expenditure and fruitless and wasteful expenditure that occurred during the financial year.

2. The exemption is based on technical accounting issues raised by the PFMA.

3. The exemption is a temporary measure designed to help Eskom restore its balance sheet.

     Treasury says the intervention was not an attempt to evade transparency, but arose from technical accounting issues.

     On Wednesday, the Treasury Department announced that it had taken emergency action to prevent a $24 billion budget shortfall. The move came as a surprise to many, as the Treasury had been projecting a $16 billion surplus for the fiscal year. The explanation for the sudden change was revealed in a Treasury Department press release:

     "The $24 billion deficit was the result of accounting issues that arose from technical issues with the Treasury's financial reporting system. The Treasury Department is committed to full and accurate financial reporting and took immediate action to address the issues."

     The explanation is a bit confusing, but it seems that the financial reporting system was not able to accurately track the government's finances. This caused the deficit to increase, and the Treasury was forced to take emergency action to correct the problem.

     This incident is a reminder of the importance of accurate financial reporting. It can help the government make sound decisions about its spending, and it can help taxpayers understand how their money is being used.

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