The finances of Eskom Holdings, Transnet and other companies owned by South Africa\u2019s government have deteriorated to such an extent that they now pose a significant risk to the nation\u2019s finances, the auditor-general said.<\/p>\n
\u201cState-owned companies are not applying proper accounting controls and the ministries responsible for oversight of these entities\u201d are not doing a proper job, Kimi Makwetu told reporters in Cape Town on Wednesday.<\/p>\n
The Trans-Caledon Tunnel Authority, Alexcor Ltd, and Broadband Infraco were also identified as being in parlous financial states, while there were doubts that the South African Broadcasting Corporation, PetroSA, and the South African Post Office could continue operating without government assistance, Makwetu said.<\/p>\n
He expressed concern that audits still had to be undertaken on South African Airways, SA Express and armaments group Denel.<\/p>\n
Key highlights of the Auditor-General\u2019s annual report on government departments and state-owned companies:<\/p>\n
National and provincial government departments are facing an increased risk of litigation, with almost a third of them facing claims exceeding 10% of their next year\u2019s budgets.<\/p>\n
The claims aren\u2019t budgeted for, meaning the successful ones will have to be settled using funds earmarked for other purposes, Makwetu said.<\/p>\n