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'Transnet to go toe-to-toe with auditors over R49bn irregular expenditure'
State-owned utility Transnet revenue has grown slightly by 1.6% but the company is s embroiled in a spat with its auditors over items in R49bn irregular expenditure reported in its 2019 financial year.
Acting group CEO Mohammed Mohamedy stated that the vast majority of irregular expenditure reported in the current year related to contracts entered into in prior years.
Eyewitness News reporter Theto Mahlakoana has more.
The results that were presented by the company show that there is an attempt by the current executives, who are mostly in an acting capacity, that the revenue has grown slightly by 1.6%.
Theto Mahlakoana, Reporter - Eyewitness News
There are a lot of positive indications but the bigger problem is that the company has to go toe-to-toe over the R49bn over irregular expenditure.
Theto Mahlakoana, Reporter - Eyewitness News
#Transnet - Conclusions: the company has raised R6.2 billion in new long term debt on the strength of its own balance sheet - only 2.7% of the R127.7 billion total debt are government guaranteed. TM
— EWN Reporter (@ewnreporter) September 30, 2019
Listen to the full interview below...
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