News & Events
The South African government’s decision to grant Eskom a special exemption from disclosing certain financial losses in its official statements has sparked controversy and raised concerns about accountability and transparency. Professor Peter Goss, a corporate governance expert, weighs in on the issue, explaining the potential implications of this move.
At the heart of the debate lies the Public Finance Management Act (PFMA), which governs financial management in the public sector. Transparency and accountability are central principles of the PFMA and corporate governance best practices worldwide. However, Eskom’s exemption allows it to temporarily withhold disclosure of financial losses stemming from criminal conduct, irregular expenditure, and wasteful spending.
In this stark discussion about corruption in South Africa, Professor Goss delves into the problem’s systemic roots, offering solutions that go beyond simply chasing scandals. He argues that law enforcement alone can’t tackle this deeply ingrained issue. Instead, we need to shift focus to the people wielding the power, ensuring they operate with integrity and transparency.
Existing rules aren’t the problem, it’s the individuals bending them for personal gain, often through cronyism and political influence. Professor Goss champions independence and proactive oversight. Empowering bodies like the Public Protector and SIU to actively monitor procurement processes is crucial. He stresses the need for fair competition, where everyone gets a chance, not just those with political connections.
The Zondo Commission testimony by Faki Moloi Mentor raised crucial questions about witness preparation and the potential pitfalls of relying solely on affidavits. While Mentjies’ detailed account offered intriguing insights, her dependence on the script and focus on seemingly trivial details drew concerns about the reliability of her memory and the overall impact of her evidence.
Professor Gos’ insightful analysis sheds light on the nuanced dynamics of witness preparation and the significance of reliable, corroborated evidence in the Zondo Commission’s quest for justice. In this complex stage of the investigation, careful preparation and adherence to fair procedures will be paramount in ensuring the credibility and impact of each witness’s testimony.
In a recent discussion on the 2016-2017 municipal audits, the findings revealed a concerning regression in many local government administrations. The report, as highlighted by the Auditor General, pointed to widespread irregularities and financial mismanagement, with corruption identified as a major contributor to poor service delivery in numerous municipalities.
Joining the discussion was Peter Goss, a corporate governance and anti-corruption consultant, and author. Goss emphasized the need for a cultural shift towards corporate governance supported by proactive measures to address issues before they escalate. The staggering figures of irregular and unnecessary expenditures were attributed to a lack of adherence to due processes and a failure to implement comprehensive corporate governance frameworks.