Transnet swings back into profit as it posts first unqualified results since 2018

[TheMightyQuinn]

Here's the report which might make for interesting bedtime reading, lol

https://www.transnet.net/InvestorRelations/AR2021/2021%20ANNUAL%20RESULTS%20PRESENTATION.pdf

It is odd that they actually have less revenue and volumes plus increased costs and yet turned a profit. Haven't looked at the balance sheet to see where the profit comes from.

Any auditor can make any balance sheet show a loss or a profit...depending on what is required.

It is all BS smoke and mirrors.

 

[Pegasus]

Are we doing that thing of scoffing at clean audits when they being achieved by ANC run institutions? The same clean audits that we fawn over when they are achieved by DA run institutions?

Or am reading things on a question totally unrelated to that? Just wondering because same thing happened when Ekurhuleni started getting clean audits, for some reason clean audits were suddenly not worth the paper they are written on and the Auditor General was an ANC cadre blah blah blah...

Anyway, I know deep in our hearts of hearts we just want good governance and our SOEs to be run properly, angithi mganam?

Why are you so excited about a clean audit. Is the bar that low for you comrades?

Oh wait....

 

[TheChamp]

Why are you so excited about a clean audit. Is the bar that low for you comrades?

Oh wait....

The same reason we get excited when the AG announces the municipal audits and the DA's municipalities are up there, with their names in lights, what has changed?

I am just continuing with the rich MyBb tradition of celebrating good governance, I don't get the sudden apprehension from everyone, are you people sick or something?

 

[TheMightyQuinn]

Are you dense?

Rhetorical question?

 

[TheMightyQuinn]

Hate to burst everyone's bubble, but the "profit" that they scored was mostly due to a revaluation of their assets.

https://twitter.com/i/web/status/1552899400095129602

Basically it is because of an accounting definition, not any savvy business accuman.

So just like I said...

 

[SubtleBeast]

Any auditor can make any balance sheet show a loss or a profit...depending on what is required.

It is all BS smoke and mirrors.

Hope not. SA needs this win.

 

[konfab]

And the clean audit? Do we have any reasonable explanation for that?

Giving credit where it's due is an art...

Great, we lost millions of taxpayer rands, are strangling the economy with our monopoly on exports, but at least we did what the law requires us to do. Well done. **pats on Transnet's head**

 

[konfab]

The same reason we get excited when the AG announces the municipal audits and the DA's municipalities are up there, with their names in lights, what has changed?

I am just continuing with the rich MyBb tradition of celebrating good governance, I don't get the sudden apprehension from everyone, are you people sick or something?

Municipalities are not companies, they are meant to run at break even. If a municipality runs a profit, it isn't spending taxpayer money correctly.

 

[TheMightyQuinn]

Are we doing that thing of scoffing at clean audits when they being achieved by ANC run institutions? The same clean audits that we fawn over when they are achieved by DA run institutions?

Ag shem...the eternal ANC victimhood.

This "clean audit" that you had an orgasm about, was very quickly picked apart and exposed for the sham that it it is.

But you immediately turn to victimization...as is typical. Go cry somewhere else please....we don't care.

The government has made their own bed and must lie in ( pun intended )...

 

[SubtleBeast]

The same reason we get excited when the AG announces the municipal audits and the DA's municipalities are up there, with their names in lights, what has changed?

I am just continuing with the rich MyBb tradition of celebrating good governance, I don't get the sudden apprehension from everyone, are you people sick or something?

The only counter to cynism is consistent and repeatable good governance and results.
Hope this is the start.

 

[TheChamp]

Municipalities are not companies, they are meant to run at break even. If a municipality runs a profit, it isn't spending taxpayer money correctly.

Audits konfab, clean audits.

 

[konfab]

Hope not. SA needs this win.

The Auditor isn't wrong. There was a profit according to the rules of accounting. The problem is that it isn't actually a material profit. Unless Transnet pulls a rabbit out of its hat, it will swing right back into a loss next year.

It having an accounting profit is one thing, them going about and saying they are now the best run SOE because they did the statutory minimum and got an unqualified audit is the problem because the company is still in dire financial trouble. And their cheerleaders should realise this.

 

[TheChamp]

The only counter to cynism is consistent and repeatable good governance and results.
Hope this is the start.

You see? That is the spirit, not moaning when state companies are being run badly and moaning even more when they are being run well.

 

[konfab]

Audits konfab, clean audits.

The purpose of a company is to make profits for its shareholder, even if that shareholder is the state. Audits are how much you can believe the financial statements of an entity.

So great, they got their books in order. Hopefully that means they can keep it like that as the taxpayer deserves to see how much of a f__Kup their ports are.

 

[Avbob se stoep]

And the clean audit? Do we have any reasonable explanation for that?

Giving credit where it's due is an art...

Irregular expenditure - Transnet requested a departure from the National Treasury from disclosing in the AFS amounts as required by certain provisions of the PFMA and related instruction notes. These included irregular and fruitless and wasteful expenditure (IFWE) and non-condoned historical irregular expenditure as required by the Irregular Expenditure Framework.

Transnet received an exemption from disclosing the particulars required by section 55(2)(b)(i) (ii) and (iii) of the PFMA in the AFS for a period of three years, starting from 2021/22 to 2023/24 financial years. The exemption was granted to allow Transnet to develop and implement internal control measures to ensure accurate and complete reporting of IFWE.

I chopped it up a bit to make it shorter, in essence this means that they do not know how much irregular expenditure there was. Since they do not have to disclose the amount, they won't perform audit testing to find an accurate amount. Now if they were to disclose irregular expenditure, the audit opinion would probably be qualified because, in my opinion, it would be material. They would not want to hide irregular expenditure if it was not material.

 

[porchrat]

The same reason we get excited when the AG announces the municipal audits and the DA's municipalities are up there, with their names in lights, what has changed?

I am just continuing with the rich MyBb tradition of celebrating good governance, I don't get the sudden apprehension from everyone, are you people sick or something?

I don't think anyone gets excited when the DA municipalities consistently get clean audits. It's simply expected as the minimum from government that it manage funds in a responsible manner.

I think the only reason people are surprised by this clean audit is that for ANC run institutions it's pretty rare. That in itself is quite sad.

 

[TheMightyQuinn]

You see? That is the spirit, not moaning when state companies are being run badly and moaning even more when they are being run well.

 

[SubtleBeast]

You see? That is the spirit, not moaning when state companies are being run badly and moaning even more when they are being run well.

Think you missed my point completely

 

[konfab]

Irregular expenditure - Transnet requested a departure from the National Treasury from disclosing in the AFS amounts as required by certain provisions of the PFMA and related instruction notes. These included irregular and fruitless and wasteful expenditure (IFWE) and non-condoned historical irregular expenditure as required by the Irregular Expenditure Framework.

Transnet received an exemption from disclosing the particulars required by section 55(2)(b)(i) (ii) and (iii) of the PFMA in the AFS for a period of three years, starting from 2021/22 to 2023/24 financial years. The exemption was granted to allow Transnet to develop and implement internal control measures to ensure accurate and complete reporting of IFWE.

I chopped it up a bit to make it shorter, in essence this means that they do not know how much irregular expenditure there was. Since they do not have to disclose the amount, they won't perform audit testing to find an accurate amount. Now if they were to disclose irregular expenditure, the audit opinion would probably be qualified because, in my opinion, it would be material. They would not want to hide irregular expenditure if it was not material.

Good grief.

The annual financial statements of the prior years included details of irregular, fruitless and wasteful expenditure, as required by section 55(2)(b)(ii) and (iii) of the PFMA, and treasury regulation 28.2.1. However, commencing with the year under review, the Minister of Finance per section 92 of the PFMA granted exemption to Transnet from complying with the aforementioned sections of the PFMA for a period of three years ending 31 March 2024. The effect of this exemption is that irregular, fruitless and wasteful expenditure is no longer included as part of the annual financial statements, and is now included under the legislative compliance section on pages 120 to 125 of the integrated report of the entity. Accordingly, I do not express an opinion on this disclosure.

So great, the unqualified audit that TheChamp is simping on, is based entirely on a process that excludes all irregular, fruitless and wasteful expenditure from the report.

 

[TheChamp]

I don't think anyone gets excited when the DA municipalities consistently get clean audits. It's simply expected as the minimum from government that it manage funds in a responsible manner.

I think the only reason people are surprised by this clean audit is that for ANC run institutions it's pretty rare. That in itself is quite sad.

But you do realize I did not join this forum yesterday, right?