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

[SubtleBeast]

Good grief.


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.

This can't be good right? What was the minister's reasoning behind this? Does this mean it will become the norm for other government institutions?

 

[ForceFate]

My gawd!

 

[TheChamp]

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.

I am sure they would be having lots of historical baggage looking at where they are coming from, hence I wouldn't judge them too harshly on that, I would however be interested to see how much irregular and wasteful expenditure there was during the term of the new management compared to previous years, because that's how progress would be determined.

 

[konfab]

This can't be good right? What was the minister's reasoning behind this? Does this mean it will become the norm for other government institutions?

Because they likely cannot finance any more bailouts for the company. As their CFO says:

Transnet CFO Nonkululeko Dlamini said the group was pleased to see some "green shoots" following the adverse impacts of Covid-19 in 2021.

The state-owned logistics company also received its first unqualified audit opinion from the auditor general in four years.

Dlamini said the unqualified audit opinion was a key milestone as a qualified audit opinion has, in past years, had implications for Transnet's ability to raise funding in the market.

So all we need to do is get our friends in high places to exclude irregular, fruitless and wasteful expenditure from the audit report and they think they can apply for financing.

The problem is that anyone who has the type of money that Transnet needs, would read their AFS, see that the audit is worth less than the bytes that render it and tell them to f-off. That is anyone other than another SOE the ANC controls like the PIC.

 

[TheChamp]

This can't be good right? What was the minister's reasoning behind this? Does this mean it will become the norm for other government institutions?

Not necessarily, it could mean they were in such a mess that exceptional measures were required.

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.

 

[konfab]

Not necessarily, it could mean they were in such a mess that exceptional measures were required.

Absolute BS.
They don't need an unqualified audit to "develop and implement internal control measures". They can do that any time they like provided the oinkers are all fired.

 

[wingnut771]

Not necessarily, it could mean they were in such a mess that exceptional measures were required.

Ah, the good old manufacture an emergency strategy so we can bypass all protocols method.

 

[TheChamp]

Ah, the good old manufacture an emergency strategy so we can bypass all protocols method.

Transnet just like many SOEs is an emergency, no one needed to manufacture anything.

 

[wingnut771]

Transnet just like many SOEs is an emergency, no one needed to manufacture anything.

How did we get to this emergency? It was let to happen in order so they have an excuse for taxpayer bailouts, ie; manufactured.

 

[TheChamp]

How did we get to this emergency? It was let to happen in order so they have an excuse for taxpayer bailouts, ie; manufactured.

Of course it was allowed to happen but now that we are here it needs to be fixed, and it is being fixed as you can see for yourself. Harping on about why it was allowed to happen is not going to help.

 

[wingnut771]

Of course it was allowed to happen but now that we are here it needs to be fixed, and it is being fixed as you can see for yourself. Harping on about why it was allowed to happen is not going to help.

Is it being fixed?

 

[konfab]

The 4 stages of Transnet denialism.

> Transnet is well managed because they posted a profit and an unqualified audit.
> Transnet didn't post a real profit, but at least they got an unqualified audit.
> Transnet made a loss, but they needed an unqualified audit to get their act together, so irregular expenditure must be excluded from their financial statements. <= TheChamp is here
> Transnet made a loss, and they received an unqualified audit because of ministerial interference.

 

[TheChamp]

Is it being fixed?

Transnet is has it's troubles and there is still a long way to go, it was never going to be fixed in a day.

Look at their financial results and compare them to other SOEs, they are in a much better position, with a good management team behind them they are well on their way to good health.

 

[R13...]

Good grief.


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.

This is very strange. An unqualified is one given without exemptions according to the GAAP, suppose our AG operates under reporting practices. And if you give those exemptions, how do we know what is being reported is worth the keyboard it was typed on?

 

[konfab]

Transnet is has it's troubles and there is still a long way to go, it was never going to be fixed in a day.

Look at their financial results and compare them to other SOEs, they are in a much better position, with a good management team behind them they are well on their way to good health.

The 5 stages of Transnet denialism.

> Transnet is well managed because they posted a profit and an unqualified audit.
> Transnet didn't post a real profit, but at least they got an unqualified audit.
> Transnet made a loss, but they needed an unqualified audit to get their act together, so irregular expenditure must be excluded from their financial statements.
> Transnet has its troubles, but compared to other SOEs, they are in a much better state than other SOEs despite a dodgy audit report<= TheChamp is here
> Transnet made a loss, and they received an unqualified audit because of ministerial interference. They should be disregarded entirely as any sort of functioning entity.

 

[konfab]

This is very strange. An unqualified is one given without exemptions according to the GAAP, suppose our AG operates under reporting practices. And if you give those exemptions, how do we know what is being reported is worth the keyboard it was typed on?

It is absolutely amazing that the law allows the minister of finance can just grant an exemption from auditing standards. It is plain evidence that the country is run by clowns.
I am sure we are going to now get a record amount of unqualified audits from municipalities now that the minister is helping the municipalities "develop and implement internal control measures".

 

[Phylax]

Good grief.


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.

Rofl, of course!

Isn't it obvious to everyone by now that he is a terrible judge of character...

Just look at him coming out swinging for the cadres as soon as their corrupt ways are exposed!

 

[TheChamp]

It is absolutely amazing that the law allows the minister of finance can just grant an exemption from auditing standards. It is plain evidence that the country is run by clowns.
I am sure we are going to now get a record amount of unqualified audits from municipalities now that the minister is helping the municipalities "develop and implement internal control measures".

You are full of drama, Why did the ANC had to endure all the bad audits and allow the DA to shine if it's so simple to get a clean audit?

 

[konfab]

You are full of drama, Why did the ANC had to endure all the bad audits and allow the DA to shine if it's so simple to get a clean audit?

Because the ANC are getting desperate. They are grasping at straws. Just like you are.

They are willing to nuke the definition of an unqualified audit such that they get 10 minutes of praise in the media.

Tell you what, if you can go and find all the times the minister of finance has granted an exemption like the one Transnet has to a DA municipality, I will take back everything I have said about the DA and their unqualified audits.

 

[Phylax]

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?

Who gets excited about achieving the bare minimum....oh wait you do!