Cape Town – Power utility Eskom has not submitted its 2021-22 annual report to Parliament within the September 30 deadline because the auditing of its finances has yet to be finalised.
Eskom is joining two other state owned entities (SOEs) that fall under the Department of Public Enterprises, Denel and Alexkor, which have not submitted the annual reports for the second year in a row.
This was revealed in a letter Public Enterprises Minister Pravin Gordhan wrote to Parliament asking that the three entities be granted time to submit their annual reports.
The Public Finance Management Act (PFMA) requires ministers to table the annual reports, financial statements, and audit report of public entities, for which they are responsible, in Parliament within six months after the end of the financial year.
In his letter, Gordhan said the completion of litigation confirmations, PFMA compliance and generation outstanding matters have contributed to the delay of the external audit at Eskom.
The minister also said the Eskom auditors have identified further significant key matters that will take time to close out.
“Eskom had to appoint new auditors, but due to late completion of the audit for the financial year ended March 31 2021, the finalisation of the appointment of the new auditors was delayed,” Gordhan said.
He added that the auditors would only be able to sign off Eskom’s annual financial statements towards the end of October or beginning of November.
Gordhan also said the cash-strapped Denel has made an application for funding, the outcome of which was yet to be deliberated at Cabinet with a definitive outcome.
“The strategic actions to unlock cash and partially relieve the liquidity constraints are under way with the relief expected.
“The final audited annual financial statements and annual reports for both the 2020/21 and 2021/22 financial years will be submitted on completion of the respective audits by the external auditors,” the minister said.
Gordhan stated that the Auditor-General South Africa (Agsa) was requested to opt in for the 2022/23 external audit of Alexkor.
The SOE was awaiting concurrence of the Agsa for the appointment of Ngubane & Co as the external auditors for 2021/22.
“The interim board approved the 2021/22 annual financial statements and annual report for submission for external audit at its meeting on May 27 2022. Due to the delay in appointing the external auditors, the audit for 2021/22 is still pending and Alexkor won’t be able to submit the annual financial statements and annual report on time,” he said.
Cape Times
