The Auditor-General’s office says government has been too slow in turning around ailing state-owned enterprises.
The failure to submit financial statements for years, particularly in the case of South African Airlines, and the delays by others such as Eskom, has also made it difficult to form an accurate picture of the state of their finances.
The Auditor-General’s office says while it supports the department’s initiative to turn around state-owned entities, the reality is, the pace has been too slow.
The AG’s Fhumulani Rabonda says a lack of funding criteria for these entities, is causing policy uncertainty.
Transnet has been the biggest culprit in terms of irregular expenditure of over R1 billion.
The AG’s office says the figure could be far higher, due to a preferential procurement exemption granted by the finance minister.