CAPE TOWN – The Auditor-General (AG), Kimi Makwetu, has issued a strong warning about the affairs of state-owned entities they remain a risk to the economy.
Makwetu’s comments on Wednesday came after Finance Minister Tito Mboweni raised a similar concern in his Medium-term Budget Policy Statement (MTBPS) in October.
In its MTBPS documents the National Treasury had flagged Eskom, SAA, Transnet and other SOEs a risk to the economy of South Africa.
In his audit outcomes report on the performance of SOEs, national and provincial departments the AG found that the finances of the state entities had deteriorated.
“The irregular expenditure of the SOEs we did not audit amounted to R28.4 billion, which included R19.6bn at Eskom and R8.1bn at Transnet,” said Makwetu.