Photo by [Zimoja]
On Wednesday (April 5), Finance Minister Enoch Godongwana withdrew the decree, which exempted Eskom from reporting its irregular, fruitless and wasteful expenditures. The withdrawal is to be formally recognised on April 6.
As stated by the National Treasury, the withdrawal is “to allow for a period of further engagement and written technical input from all relevant stakeholders on the matter”.
Days before, Eskom was given permission not to disclose its expenditures in the annual financial statements. Instead, all irregular spending would appear in the power utility’s yearly reports.
In the statement issued by the National Treasury, the Finance Minister briefly explained the reasoning behind his initial injunction.
He said, “The intention really was to allow Eskom to have better financial statements, and at the same time create an environment where there remains transparency on corruption, and irregular expenditure, as well as all the other related issues. It was never the intention of the exemption to hide anything.”
The Role of Civil Society in the Exemption Withdrawal
However, no matter the official reason, the Organisation Undoing Tax Abuse believes it was a win for civil society. Advocate Stefanie Fick echoes this sentiment proclaiming that the media, civil society, organisations and unions, and political parties pressured the government into reversing its initial decision.
“We’ve seen civil society at work. We’ve seen civil activism at work. The pressure was put on the government saying, this decision of yours is just irrational, and it doesn’t make sense. It’s not good for transparency … I really think what we’ve seen is government realising, if civil society and other groupings [raise] their voices, they better listen.”
The Executive Director of the Accountability and Public Governance Division at OUTA added that South Africans are fortunate to have a constitution that protects their rights and liberties. It grants the people and societal institutions, such as the media, the freedom to criticise, discuss and call to account any decision made by the government and what we witnessed, since the decision, was a mobilisation of society.
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The Potential to Fuel Wrongdoings
OUTA was one of many organisations which expressed concerns regarding Eskom’s non-disclosure. In a media statement, the organisation said, “The exemption creates opportunities for corruption and/or financial mismanagement, which would harm the public interest”.
What is baffling still is the lack of transparency and the purpose as to why it was necessary in the first place. As Fick pointed out, the more they tried to explain, justify and rationalise it, the more their reasoning did not make sense.
However, she said now more than ever, we as a society, the media and organisations have the responsibility to stay vigilant of such proposals and decisions made by the government, especially ones which could negatively affect the South African public.
“I think as a civil society [and] as the media, there’s a huge responsibility on us. The government needs to be criticised if they do not govern in the best interest of South Africa … What it tells me is that we have a vital role today in this new democracy in South Africa and that we are so important. People should not stop [raising their] voice because pressure can [be] put on the government to make the right decisions.”
