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EFF lashes out at SOEs for failing to submit annual reports to Parliament

The EFF has lashed out at state institutions that have failed to submit their 2022-23 annual reports to Parliament by the September deadline. Picture: Ayanda Ndamane/African News Agency (ANA)

The EFF has lashed out at state institutions that have failed to submit their 2022-23 annual reports to Parliament by the September deadline. Picture: Ayanda Ndamane/African News Agency (ANA)

Published Oct 5, 2023

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The EFF has lashed out at state institutions that have failed to submit their 2022-23 annual reports to Parliament by the September deadline.

The party said the failure to submit the reports was a clear demonstration of incompetence and a lack of accountability within the entities.

“South Africa cannot afford to have critical state entities and funds operating without transparency and accountability. This failure to meet financial reporting requirements undermines the principles of good governance and erodes public confidence in these institutions, a clear intention of the ANC’s collective leadership,” the EFF said in a statement.

The Red Berets’ statement came after the Cape Times reported that several state-owned entities and institutions failed to submit their 2022-23 annual reports within the stipulated September deadline.

The ministers under whom these entities fall, have written to Parliament giving the reasons for the non-submissions and asked for extensions.

Chief among the culprits are Eskom, SAA, Denel, National Student Financial Aid Scheme (NSFAS), Unemployment Insurance Fund (UIF), Compensation Fund, Ingonyama Trust and Government Printing Works, among others.

The EFF said it was concerned that Eskom, a critical SOE responsible for the country’s power supply, failed to finalise its accounts on time.

“The admission that there are questions raised by the Auditor-General and that the Public Finance Management Act audit has not been completed is a clear indication of mismanagement within the organisation.

“The fact that Eskom has not submitted its financial statements while there are lingering allegations of criminal cartels controlling procurement within Eskom, is a cause for concern.”

The EFF also said the failure by SAA to submit financial statements for five years was unacceptable.

“The excuse that the accounts may only be finalised after audits for the previous five years are completed is simply outrageous.

“We should note here how SAA was sold at the massive under-valuation of its assets to one Takatso Consortium, a financial transaction that is clouded by corruption and an irregular selection of the so-called ‘strategic’ equity partner,” it said.

The red berets also said Denel’s’ three-year delay in publishing its accounts and Alexkor’s delay also highlighted the consistent mismanagement of SOEs.

Regarding NSFAS, the party said the entity has been plagued by incredible mismanagement and bad leadership under Higher Education Minister Blade Nzimande.

“The delay is submitting financial statements until the end of March 2024 is unacceptable and puts the future of countless students in jeopardy.

“The delays come amid chronic delays in the disbursement of student funding and the temporary placing on leave of the CEO of NSFAS under guise of an investigation into the emerging direct payments system into students’ accounts.”

On the UIF and the Compensation Fund, the EFF noted that they were more than a year behind in submitting the annual accounts.

“This not only raises concern about their financial stability but also undermines the welfare of employees who rely on these funds,” the party said.

Cape Times