Public Enterprises Minister Pravin Gordhan, via Parliament’s announcements, tablings and committee reports (ATCs) mechanism, this week let it be known three of the State-owned enterprises (SOEs) under his control will submit annual reports late.
The three are beleaguered Denel along with rail, port and pipeline company Transnet and west coast-based diamond extraction operation Alexkor.
In terms of the Public Finance Management Act (PFMA), their annual reports and financial statements should have been tabled at meetings of the Portfolio Committee on Public Enterprises (PCPE) by end-September. Gordhan’s component of the ATCs is dated 13 October, nine working days after the 30 September deadline.
By way of explanation, the Public Enterprises Minister writes: “the entity (Denel) is experiencing serious liquidity challenges and is in the process of exploring various options in respect of the future of the company. Consequently, they are not able to prepare and submit the 2020/21 annual report and annual financial statements as a result”.
Democratic Alliance (DA) deputy shadow public enterprises minister Michele Clarke was quick to seize on the non-publication of particularly Denel’s financial statements as well as the ministerial delay in informing Parliament.
“This is another indication of Denel’s financial woes. I do not believe Denel has any ability to successfully restructure,” she told defenceWeb adding she did “not see” financial assistance from the Department of Public Enterprises materialising.